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Four days of Schrader farmland auctions result in sales over $46.3 million
COLUMBIA CITY, Indiana (Oct. 28, 2014) - Four days of farmland auctions resulted in a combined total of $46,318,200, as Schrader Real Estate and Auction Company successfully sold a major portfolio including land in the Midwest, Delta, Southwest and Mountain regions.
The auctions included farms in Illinois, Mississippi, Arkansas, Louisiana, Texas and Colorado - a total of 13,450 acres.
"We had good results on all four days. Our sellers were extremely pleased, and I think these sales demonstrated the continuing strength of the market over a broad geographic range. Each auction had a capacity crowd with strong competition," said R.D. Schrader, president of the auction company.
"Bidders are seeking to balance lower commodity prices with the substantial amounts of capital that buyers are seeking to invest. There's no question that lower commodity prices are a factor in the marketplace. On the other hand, with interest rates near all time lows and the stock market showing extreme volatility, there are still few investments that can match farmland for stability and long-term returns," said Schrader.
The series began on Monday, Oct. 20, with the auctions of two farms totaling 655 acres in Illinois for $7,650,000. Wednesday's auction of approximately 4,783 acres of cropland in Arkansas, Louisiana and Mississippi brought $16,993,200. Two days later, two farms in the Texas Panhandle totaling 6,054 acres sold for $15,045,000. The series wrapped up with the auction of a 1,963-acre farm in Colorado for $6,630,000.
"Farmers were active in every auction, but when it came to entering the last bid, it was investors purchasing much of this land. This runs counter to the trend we've seen recently of farmers buying most of the farmland at auction, but investors have been very aggressive," said Schrader.
Additional information is available at www.schraderauction.com, or by calling 800-451-2709.
Schrader Real Estate and Auction Company, based in Columbia City, Ind., is a leading auctioneer of agricultural land throughout the United States and is a four-time USA Today/National Auctioneers Association Auction of the Year Winner, as well as a two-time winner of the Grand Champion Marketing Award of Excellence.