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Successful Land Sale: North-Central Iowa Land Averages $8,000
A few years ago, the bidders would have been lining up to get a crack at the property that sold in Hancock County, Iowa, on September 30.
The auction featured 160 acres northwest of Klemme. The land is mostly level with some draws in the property. There are 152.91 acres of tillable land with soil types including mostly Bode and Webster. The Corn Suitability Rating 2 is 78.6 (based on a 5-to-100 scale).
There were three bidders registered (although a large crowd attended the sale), says Jeff Obrecht, auctioneer and broker with Peoples Company, which had the sale. The number of active bidders is about a fourth of what it would have had three years ago. The land sold for $8,000 per acre, or $1.28 million. “That is about what we thought it would bring,” says Jeff Obrecht, auctioneer and broker with Peoples Company, which had the sale. He reckons the buyer paid $8,400 per tillable acre. The tract had 4 acres in road right of way and another 3 acres in waste.
The land sold to the longtime tenant, “…which may have affected bidding,” he says. In the past, land auction courtesy often dictated a farm’s tenant would have an opportunity to buy the land.
The 10-year average corn yield in Hancock County is 175 bushels per acre. Soybeans over the same time averaged 50 bushels per acre. In 2016, the value of farmland in the county averaged $8,011 per acre, and cash rents averaged $234 per acre.
For more information on this tract, view the full AcreValue report.
Best of the Rest
Indiana, Johnson County: Four tracts totaling 83 acres east of Greenwood sold October 5. Tracts 1-3 included 62 acres, all but 8.27 acres of which are tillable, featuring Brookston and Crosby soils. Tracts 1-3 sold to an investment group for $695,000 ($11,210 per acre). Tract 4 was all timber. It sold for $150,000 ($7,143 per acre). Halderman Auction had the sale.
Kansas, Ford County: Two tracts totaling 303.1 acres sold October 5. Tract 1, 156 acres of tillable dryland about 18 miles southwest of Dodge City, has Harney silt loam soils. It sold for $240,000 ($1,538 per acre). Tract 2, 147.1 acres just southwest of Dodge City, has 67 acres of tillable land, and the rest is in Conservation Reserve Program, with a contract through 2021. Midwest Land and Home had the sale.