SOURCE: Schrader Auction Company

Schrader Auction Company

September 11, 2009 12:56 ET

Illinois Farmland Brings More Than $10.49 Million in Schrader Auction as Prices Continue to Show Strength

STAUNTON, IL--(Marketwire - September 11, 2009) - Approximately 1,600 acres of Illinois farmland sold for a total of $10,492,610 Thursday, with Schrader Real Estate & Auction Company managing the sale.

The auction was closely watched by area farmers and investors as a barometer of the strength of prices for tillable land, according to Rex Schrader, president of Schrader Auction.

"There was a lot of interest in this sale, not only among those seeking to buy the land, but among those who saw it as a test of the strength we've continued to see in the market for tillable farmland. Even with approximately 1,600 acres selling in one day, the market absorbed it nicely," said Schrader.

The sale included three farms that were being sold as part of the Chapter 11 reorganization of VeraSun Energy to maximize the return for creditors.

The sale included:

--  Approximately 487 acres in Litchfield, Ill., in Montgomery County,
    which sold for $3,282,610, or an average of $6,740 per acre. The land,
    primarily tillable farmland, sold to five different buyers, with the two
    largest buyers including a local buyer and an out-of-state investor seeking
    land for a possible future grain terminal. "There was a great deal of
    interest in specific tracts as well as various combinations. The rail
    access made it attractive as a grain terminal site, and that added to the
    demand," said Schrader.
--  Approximately 380 acres in Madison County, Ill. After active bidding
    in various combinations, the property sold to a local farm family as an
    entirety for $2,884,000, an average of $7,591 per acre.
--  Approximately 733 acres in Vermilion County, in eastern Illinois.
    After bidding in various combinations, the property sold as entirety for
    $4,326,000, or $5,903 per acre. "This was a buyer who was adding to his
    family's existing holdings. While there was a great deal of participation
    among both farmers and investors, institutional interest was diminished a
    bit because some of the land excluded mineral rights and was adjacent to a
    nearby Superfund site. There was also a portion of the land where
    underground mining had been conducted some years back," said Schrader.
    

The land in Montgomery and Madison counties sold in a morning session in Staunton, Ill. The Vermilion land sold in an evening session near Covington, Ind.

Schrader Real Estate & Auction Company, headquartered in Columbia City, Ind., is one of the nation's leading auctioneers of farmland and timberland. Westchester Auctions, of Champaign, Ill., partnered with Schrader on the sale. Individuals seeking information on other Schrader auctions may visit the company's web site at www.schraderauction.com or call 800-451-2709.

Contact Information

  • For more information:
    Carl Carter
    205 823-3273