By MEGGIE. I. FOSTER
Assistant Editor GREENFIELD, Ind. — Amid the slowdown in residential and commercial development in one central Indiana county, a recent farmland auction has restored faith in the value of productive farmland, according to Auctioneer Steve Sanford.
The well-attended farm sale in Hancock County, Ind., organized by Sanford, also a real estate broker with the Remax Realty Group, consisted of more than 323 acres generating in excess of $2.64 million in total sales, with one productive 80-acre tract averaging more than $10,600 an acre.
Additionally, tracts one and two consisting of 108.498 acres in Blue River Township sold for $7,281 an acre, adding up to $790,000. The remaining four tracts in Buck Creek Township, consisting of 135.326 acres was purchased for a total of $1 million or $7,389 an acre. Nearly every one of the seven tracts was prime cropland, with the exception of one tract containing two grain bins.
To sum the sale up in a few words, Sanford said “the perfect storm yields bumper prices.”
“In both Blue River and Buck Creek townships, there were several well-positioned people with the motivation to add to their operation,” he said, adding that while the purchaser of the 80-acre tract was not a farmer, the contending bidder ($840,000) was in fact, a farmer. Also, the purchasers of the remaining tracts were two local grain farmers.
With over 100 individuals present at the sale, including 28 registered bidders, Sanford said “I had a lot of interest on this.” Sanford emphasized a lot.
“There were really three groups of people hitting it hard (at the sale),” he said. “And there were a couple more that I know were really interested that didn’t even get in on the bidding.”
Sanford, who also farms with his son and son-in-law in Greenfield, said “he saw this coming,” but “for the life of me, I still can’t believe how high the bids really went. They (the buyers) really wanted it. It’s on the move up there at least for a while.”
According to Sanford, value for farmland, at least in Hancock County, is on the upward trend. He said while he doesn’t know the motivation behind the high-selling tract of land, there may be commercial or residential development potential in its future.
“There is commercial development up the road from this land from the 80-acre tract, and it’s one mile from sewer and water and the 37-acre tract is only a quarter mile from sewer and water,” he added.
But at least for now, the land will continue to be farmed.
“I’ve been planning this (sale) for a while now,” Sanford explained, adding that he began working with the sellers, two sisters heir to the family farm, nearly one year ago. “Right now, I believe the auction is the best method to sell farm ground.”
But if you asked him a similar question two to three years ago, he may’ve given you a different answer.
“The dynamics of what was happening in the farming community was much different (then),” he said. “At that time, it depended on the situation.”
Whether or not farmland values are high, or not, Sanford couldn’t comment as to if it was a better time to sell or buy land. In his opinion, farmland prices are not just going to continue to escalate, they will begin to stabilize at some point, he said.
“Everything is cyclical, it has been that way throughout history. If you’re a large farmer farming 2,000-3,000 acres, the ratios aren’t bad,” Sanford explained. “Farmers have made good money the last couple years, many of them probably want to expand, and they’d just as soon have it in land. You gotta’ go with your instinct.”
While Sanford mentioned that the commercial and residential opportunities in Greenfield, just on the outskirts of Indianapolis, has simmered down over the past couple years, he confirmed, “the only thing that shows great strength in real estate right now is farm ground.”
For more information or to contact Sanford, call 317-716-8679 or e-mail him at steve.sanford@remax.net |
