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Successful Land Sale: Adams County, Illinois, Land Averages $9,500
Slumping grain prices are not deterring buyers of top-quality Illinois farmland. Sullivan Auctioneers handled the sale of 131 acres between Ursa and Mendon in Adams County on September 16.
There were two tracts:
- Tract 1, 70.2 acres, is an odd-shape piece with 65 acres in cropland. It has some tile and features Downsouth and Bethalto soils, with a Productivity Index of 130 (based on a 61-to-147 scale). It sold for $666,900 ($9,500 per acre).
- Tract 2, located just east of Tract 1, has 63.7 acres, with 59 acres in cropland. Soil types include Edwardsville, Downsouth, and Menfro, with a 130.6 PI. There is some tile on the property. It sold for $605,150 ($9,500 per acre).
Although the $9,500-per-acre price seems healthy given today’s corn prices, it pales in comparison to another sale the auction company had in May in Adams County. That sale included farms with PIs ranging from 130.7 to 135.5, and prime farmland (PIs ranging from 130.7 to 135.5) with selling prices ranging from $12,500 to $16,250 per acre. Comparing these two sales may be like apples and oranges, however. The May sale was considered prime farmland and the two sales were about 15 miles – and several months – apart.
According to the Illinois Society of Farm Managers and Rural Appraisers, the average value for excellent-quality farmland in this region in 2015 was $12,000 per acre. The two-year average corn yield in Adams County is 180 bushels per acre; for soybeans, it’s 51 bushels per acre.
Best of the Rest
Iowa, Cedar County: 108 acres just south of Downey sold September 16. The tract has 104.8 acres in tillable ground, with mostly Downs silt loam and Tama silty clay loam soils and a Corn Suitability Rating 2 of 79.2 (on a scale of 5 to 100). The rest of the tract is in woods. It sold for $982,800 ($9,100 per acre). Hertz Real Estate Services had the sale.
Kansas, Mitchell County: A cash rent auction of 126 acres 2 miles south of Simpson was held September 15. The land straddles the Solomon River, and features mostly Roxbury loam and McCook silt loam soils. The winning bidder is locked into a five-year cash rent contract, beginning August 21, 2017. The cash rent will be paid twice per year. The winning bid totaled $129 per acre, or an annual cash payment of $16,254. “This is the second such auction we’ve held in the area within the last month. The first was for $133 per tillable acre,” says auctioneer Luke Hansen of Hansen Real Estate and Auction.