Illinois Farmland Auction Sets New Record

December 22, 2017 04:03 AM
Leman Farm Auction

In Woodford County, Ill., 77 acres of high-quality farmland sold for a record price of $15,850 per acre Nov. 17.

The farm was located near Roanoke and was 100% tillable with a soil productivity index (PI) of 142. The maximum PI is 147, per Illinois Bulletin 811. View the property flyer.

“Spirited bidding was seen from local farmers looking to expand their operation in this tightly held area. It was a rare opportunity to purchase a high quality, all tillable tract of land,” says Soy Capital Ag Services Dave Klein, whose firm based in Bloomington handled the auction. “Looking back, we believe the previous farmland auction price record for Woodford County was set in August 2014 for 80.96 acres at a price of $15,500 per acre.”


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Spell Check

Mitchell, SD
12/22/2017 08:31 AM

  Ho Ho Ho........Merry Christmas!! it only takes 4 things to make an auction......something to sell, an auctioneer (real of fake) and two dam fools to bid one another up!! what idiots!! Agree w the previous comments, the time is coming. More "no sales" showing up. And granted, here and there, one will find the four ingredients I mentioned, and then add two stubborn neighbors, will get "into it", and go crazy. I guess more than a few sales, where "the 2nd highest bidder" sleeps better the night after the sale, than the highest bidder?? oh ya!! Lot of buyers 3-4-5 years ago, wish they would have waited!!

Jackson, WI
12/22/2017 11:35 AM

  I must be the only one in the whole country that thinks none of this makes sense! Unfortunately in my part of the country we don't get 250 bushels per acre corn and 70 bushel beans and we run equipment with 10000 hours on and hope there will be enough money to overhaul it when the time comes this is reality! There must be a lot of old money that these farmers have swindaled or cheated or where just plain lucky to have accumulated because it isn't here or maybe we just suck as farmers. Maybe we should all quit and let these real Hot Shots do it all, they must know better. But all that being said my family has been here for 7 generations. we've had time just not that lucky I guess?

Quincy, IL
12/22/2017 04:35 PM

  Well, not to start an argument but I have to respectfully disagree with Lenders driving up land values in the 80's. Supply and Demand are the only drivers of price, nothing more. While it's true you can make more money doing something else, that's not how farmers think, many farm because it's a way of life, not a get rich quick (maybe not at all) scheme. With that said I totally agree with the thought that these prices are outrageous. I've worked on the finance side of Ag for the past 10 years and can do the math. If this farm produces 250 bu./acre at $3.50 per bu., that's $875/acre gross with operating expenses at approximately $450/acre, leaving a DSCR Margin of $425/acre to service debt or $32,725/year. A 20-year loan priced at 5.50% with an annual payment of $32,725 means you can only finance $391,076 of the $1,220,450 purchase. Simply put you would need to put down 68% of the purchase price to break even. It's obvious that some farmers are stealing from Peter to pay Paul in a land sense in order to make ends meet. Most do not have this kind of down payment and are continuing to leverage themselves to the hilt. All I can say as a good word of advice to any farmers reading...get a long term fixed rate and do not by any means do a balloon note. If/when land values crash a balloon will be the undoing of your life's work. Look to the residential market for evidence of that and you'll find that balloons are pretty much a thing of the past for that industry.


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