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Local investors prevail in auction of Boone County, Ind., farmland

Local investors prevail in auction of Boone County, Ind., farmland

COLUMBIA CITY, Ind. (Aug. 9, 2011) -- Local investors buying in relatively small quantities prevailed in last week's auction of 681 acres of land in Boone County, just north of Indianapolis. Schrader Real Estate & Auction Company managed the sale.

The land, offered in 12 tracts, sold to nine different buyers at prices ranging from $5,099 per acre to $8,333 per acre.
"The local investors are playing a growing role in auctions for farmland, and we believe the current turmoil in financial markets will feed this trend. Whether farmers or not, local bidders tend to be strong bidders, and we saw that clearly demonstrated in Boone County," said R.D. Schrader, president of the company.

While local farmers have been consistently competitive in recent Midwest farmland auctions, it is increasingly common for local investors who are not active farmers to end up as the new owners, he said.

Even the highest bidder for the property as a whole was an investor who is not an active farmer, according to Steve Slonaker, who managed the auction for Schrader. "Nobody knows the value of land like the people who live there, and people want to own part of it. These buyers will enjoy excellent returns by leasing the tillable land, and they'll have the satisfaction that only land ownership can bring," he said.

"While some of the land may have had potential for future development based on location, the reality is that these results reflected the continuing demand for the stable returns and long-term appreciation of agricultural land. In fact, the recent gyrations of the stock and bond markets only serve to make farmland more attractive," Slonaker said.

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