Aggressive bidding for Allen County farmland
A 121-acre tract of farmland in northeast Indiana sold last week for a price well above state averages, according to the auction company that handled the bidding. Columbia City-based Schrader Real Estate and Auction Co. says the property in the Allen County community of Woodburn sold for $19,984 per acre, totaling $2.4 million.
“Several things are noteworthy about this result,” said R.D. Schrader, president of the auction company. “It’s rare to see prices per acre in the $20,000 range with all the serious competition coming from local operators. We had investors in the room, but they dropped out quickly as bidders focused their attention on the farm as an entirety.”
In August, Purdue University released its annual Farmland Value and Cash Rents Survey that showed top quality Indiana farmland averaged $12,808 per acre, up 31% from the same time in 2021. The average per acre price of average quality farmland came in at $10,598.
The auction attracted 25 bidders from Indiana and Ohio.
“A big plus was that the farm was rectangular, and the tracts were adjacent,” said Jerry Ehle, managing broker for the auction.
Schrader says farmland demand has remained strong and stable.
“Interest rates have leveled off a bit, and farmland is an excellent investment for those seeking to avoid the volatility of stock and commodity markets. Farmland has also historically been a great hedge against inflation,” said Schrader.