Active Auction Results from Kansas

Active Auction Results from Kansas
Photo Credit:AgView | Story Source: Farmers National Company

By: Randy Dickhut, AFM Senior Vice President - Real Estate Operations - Farmers National Company

 

During the week of February 11, Farmers National Company held three separate land auctions selling 2,840 acres in three counties in south-central and southwestern Kansas. Public auctions are a good way to gauge land prices in an area as the open market and competitive bidding will ultimately determine what the market is willing to pay. 

 

To have a successful and accurate auction, the land for sale has to be fully marketed and advertised in local, regional, and nationwide venues. The expertise of the local agent who knows the land and the marketplace is critical for a successful auction as is the auction team the day of the sale. All these factors came into play recently to produce successful sales for the sellers.The land being sold ranged from highly productive irrigated cropland to dryland tracts.

 

Paul Schadegg, Area Sales Manager, commented that “One common result among the three auctions was that they were all well attended as the agents did a good job getting the word out across the area.” There was a good number of active bidders at each auction, including local farmers and area land investors, so there was productive competition for the land. All properties in each auction were sold by the second round of bidding, which is good given the more cautious mood of land buyers in many areas.

 

The dryland tracts sold at or slightly above the current market value for that type of land in those areas. The good irrigated land sold very well hitting levels seen two years ago for irrigated cropland. Schadegg observed that, “The sale price of the good irrigated land showed the continued demand for high quality land in productive areas.”

 

Despite the overall cautious mood in agriculture, there remains buying interest in the farmland market from farmers and investors. Knowing the marketplace coupled with extensive exposure of a sale is attracting qualified buyers for the quality land coming up for sale today.