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Northwestern Indiana farmland sells for $10.24 million, signaling continued demand
Nov. 13, 2013 /PRNewswire/ -- In announcing plans to auction 1,739 acres in northwestern Indiana, R.D. Schrader called it a "very significant event" in a market where relatively few larger farmland properties have been available. And after Tuesday's sale of the land for $10,240,000, he said it was significant in a second way - demonstrating that demand for farmland continues to be strong.
"We had a packed house, with 88 registered bidders and highly competitive bidding, and those are the best indicators of all," said Schrader, president of Schrader Real Estate and Auction Company, which marketed the property and conducted the auction.
Bidders included local operators as well as investors, and ultimately, it was an investor who purchased most of the cropland - 1,454.5 acres - for $8.8 million.
"We weren't surprised to see see strong investor interest, because investors haven't had that many opportunities to buy larger properties. The tracts making up the 732 acres of the most productive land averaged $8,277 per acre," said Schrader.
"This result, coupled with the sale on Monday of 160 acres in Centreville Michigan for $9,343 per acre, shows that demand for farmland remains strong and broad. Sometimes you have investors buying, as we did Tuesday in Indiana, and sometimes you have local farmers getting the property, as was the case in Michigan on Monday," said Schrader.
Schrader said farmers and investors alike are focused on the location and productivity of each farm. "One sign of a healthy market for farmland is that bidders are thinking long term relative to their investments," he said.