Farm and ranch land values continue to show remarkable strength, undeterred by the widespread severe drought of last summer.
Driven in part by fears of higher capital gains and estate taxes after the first of the year, sales of large tracts of farm land have been common.
Back-to-back farm and ranch land auctions in Nebraska and Kansas drew strong crowds and resulted in a combined sale price of more than $30 million Nov. 8-9, with Schrader Real Estate & Auction Company managing both auctions in cooperation with the Lund Company.
"We already knew that demand for farmland continued to be strong, and these two auctions clearly showed that. We had bidders of all types -- operators, local investors and investors outside the area, all competing vigorously for these properties," said Schrader.
The first event -- held in Hastings, Neb. on Thursday, Nov. 8 -- offered 1,855 acres, which sold to a combination of 10 different bidders for a total of $15,432,600. Prices per acre on the tillable tracts ranged as high as $11,386 per acre.
The next day, an auction of 2,717 acres in Moscow, Kansas, resulted in a sale of the land as an entirety for $14,688,000.
"The Nebraska land sold in smaller tracts to 10 different buyers. About half of those purchased a single quarter, and all were farmers except for one investor, who purchased 400 acres. The Kansas land, by contrast, ended up selling an entirety, with an investor prevailing," said Schrader.
Schrader Real Estate and Auction Company, based in Columbia City, Ind., is a leading auctioneer of farm land and ranch land throughout the United States. The Lund Company is an Omaha-based real estate company, marketing and managing over $1 billion in real estate.
To learn more about sales large and small across Kansas, be sure to watch for your December Kansas Farmer.