Ag Land Auctions Continue To Lead The Market

By Kristine Fladeboe Duininck, Auctioneer, Broker, REALTOR®

On the behalf of the 1 Stop Realty, Inc team; we couldn’t be more excited to be Ag land professionals and I wanted to report to you on the current market culture, our past auctions, upcoming fall auctions and our new multi-parcel farmland auction software.

Our land auctions continue to sell very strong – stronger than ever! Why? My opinion is that with high commodity prices, less farmland supply versus high buyer demand, historically low interest rates, the contagious spirit of competition…all this combined makes for a record auction! Our team is convinced that real estate auctions are the #1 choice for today’s land sellers. Real estate auctions generate the highest revenue possible and give buyers near and far an equal opportunity to buy your farm. I have highlighted two auctions below.

1. On September 8th, the Heller Group team kicked off the fall with a very successful farmland auction in Olivia, MN. The 472 deeded acre farm (429 tillable) is located in Renville County. This tract has an average amount of tile with CPI’s on all three parcels in the high 80’s. There were 20 registered bidders and the contract sale price of the farm came to $7,285 per deeded acre. We chanted and employed our new multi- par software for this auction and the bidders found it to be easy to understand, efficient and professional. My personal opinion is that mixing the traditional auction chant with cutting edge technology is a special combination.
   
2. On September 29th, we had another great land auction in Windom, MN. The 80 acre farm is located in Cottonwood County. The farm had some tile with a high CPI of 92.4. Auction day was comprised of 10 registered bidders and the contract sales price of the farm came to $8,295 per deeded acre. From my preliminary research, I believe this is a new record price for Cottonwood County.

It continues to be a historic time to sell agricultural land in Minnesota (throughout the upper Midwest for that matter) and most families are seeing the highest prices ever for their lifetime of hard work. Many families that have been on the “selling fence” have decided to capitalize on this strong market and for now the capital gains tax rate continues to be historically low.

We realize that deciding “if and when” to sell your farm or your family’s farm is probably one of the most difficult decisions you’ll make. If you determine it is in your best interest to sell the farm or at a minimum you want to visit with someone, our 1 Stop Realty, Inc. team is here to help with your questions. We offer complimentary and confidential consultations and look forward to the opportunity to be of service to you.