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Michigan farmland sells for $8,865 per acre

A 190-acre farm in Michigan sold at auction for $1,410,000 Monday, April 16, with Schrader Real Estate & Auction Company marketing the property and managing the sale.

Most of the tillable farmland was contained in a single tract of 97 acres, which sold to an investor for $860,000, or $8,865 per acre. The farm was sold as dry land, with no land or irrigation equipment. The buyer of the 97-acre tract indicated that there are plans to irrigate the land.

"This reminds me that there's no substitute for letting people compete for the property in an auction, especially in a vibrant market like this one," said R.D.Schrader, president of the auction company. "The significant thing to me is that even when bidding on the tract reached the $7,000-per-acre level, we still had several bidders actively competing for the land. It is very easy to underestimate the current value of farmland in the Midwest."

The remaining 93 acres, which sold to a different bidder for $550,000, included a country home, approximately 1,300 feet of frontage on the White Pigeon River, approximately 9.6 acres of tillable land, and wooded acreage.

The sale was managed by Ed and Ted Boyer in Schrader's Michigan office.

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