SOURCE: Schrader Real Estate & Auction Company

Schrader Real Estate & Auction Company

July 07, 2011 10:57 ET

Farmland Prices Continue Upward March in Two Indiana Auctions

COLUMBIA CITY, IN--(Marketwire - Jul 7, 2011) - Indiana farmland prices continued their climb last week as farms in Spencer County and northern Randolph County sold at sharp increases to previous sale prices for the same land. Schrader Real Estate & Auction Company conducted both auctions, which brought a combined total of more than $6.68 million.

"We're continuing to see strong crowds and active bidding by local farmers as well as investment funds and outside investors. This is resulting in excellent profits for the sellers as more people seek the attractive returns and stability of farmland," said Rex Schrader, chief financial officer of the company.

On Wednesday, June 29, the Spencer County land sold at prices as high as $6,875 per acre, with most of the tillable land selling for $6,428 and $6,554 per acre. "We sold about 223 acres of this land in 2003 for $1,930 per acre, which was good at the time. It's more than tripled," said Schrader. Approximately 82 percent of the Spencer County land was tillable.

Mason Seay, a longtime agriculture specialist for German American Bank, said the price was "the highest ever for land in Spencer County for row crop production."

In the Randolph County auction, 551 acres sold to a single buyer for $2,677,500, or $4,859 per acre. "Like the Spencer County land, this property had appreciated considerably," said Schrader. "The price varies according to quality and location, but across the board, the clear direction is up."

The two sales also illustrated the two most common types of bidders competing for land -- those who are seeking smaller tracts to add to their existing farms and farmland holdings, and investors seeking larger tracts. "In both of these auctions, we had both types of bidders competing. The Spencer County land went to five different buyers, but in Randolph County, one bidder prevailed," he said.

Schrader Real Estate and Auction Company, based in Columbia City, Ind., is a leading auctioneer of tillable farmland throughout the United States. Individuals seeking additional information about the firm and its auctions may visit www.schraderauction.com or call 800-451-2709. More auction information.

Contact Information

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    Lindsay Fernandes
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