January 18, 2022

Auctions in Ohio and Indiana demonstrate strength of cropland market

COLUMBIA CITY, Ind. — Two Ohio farms attracted strong fields of bidders and sold at prices well over $13,000 per acre, with Schrader Real Estate and Auction Company conducting both auctions.

The auction of 160 acres in New Carlisle, Ohio, drew a field of 41 registered bidders, resulting in a final sale price of $2.22 million, or $13,875 per acre.

Three days later, Schrader conducted the auction of a 376-acre farm in Clarksburg, Ohio. That auction attracted 24 registered bidders, resulting in a sale price of $13,347 per acre and a total sale price of more than $5 million.

“The results of both auctions demonstrate the underlying strength of the market for cropland, the breadth of demand and the effectiveness of the auction method for getting a good result,” said Andy Walther, who managed both Ohio auctions along with Travis Kelley.

“There hasn’t been a lot of farmland on the market, so there may have been some pent-up demand. Interest rates remain near historic lows, and key commodity prices remain at levels that are much improved over a year ago. All of these conditions support the stronger land prices we are seeing,” Walther said.

A third auction, featuring 583 acres in Defiance County, Ohio, and DeKalb County, Indiana, brought a total of $6 million on Nov. 1. The most productive cropland brought $13,068. The land was offered in 22 tracts and sold to 11 different buyers.

“As we look at these results, it’s important to remember that farmland prices will vary by quality of land and location. But in each of these cases, as well as other auctions, we are seeing broad based participation by operators and investors alike. These bidders understand that farmland is a long-term investment for those seeking stability and solid returns,” said R.D. Schrader, president of the company.