Land prices during the fall and winter auction season continued to increase as commodity prices continued to set new highs, according to Rex Schrader, president of Schrader Real Estate and Auction Company, Inc. Record numbers of buyers attended the auctions to compete for over 1,600 acres of land situated throughout Northwest Ohio in counties including Defiance, Putnam, Paulding, Henry, Hancock and Wood.

The average land price at Schrader auctions this winter in Northwest Ohio was $4,480 per acre, which included land qualities in all classes. Top prices for high percentage cropland farms at auction were $5,921 per acre in Defiance County, $5,909 per acre in Henry County and $5,667 per acre in Paulding County. The lowest land prices were on low volume timberland at $2,985 per acre and land with flooding risk at $2,830 per acre.

According to the Ohio State University Extension surveys, in Northwest Ohio in 2007 “top cropland” averaged $4,040 per acre, “average cropland” averaged $3,417 per acre, and “poor cropland” averaged $2,762 per acre.

Schrader believes the job of pricing land is becoming more and more difficult with so many variables affecting land prices with a spread of over $4,000 per acre between the highest valued farms and the lowest valued farms in Northwest Ohio. Some of the many variables affecting farmland values include the soil types, drainage, size and shape of fields, percentage tillable, and road access, location and strength of neighborhood. In addition to these variables, the real driving force creating cropland values is the value of the commodities. Even though pricing and appraising land today is difficult, when all farmers and investors come to an auction, the best price is determined by the bidders on auction day.
Commodity values have also affected the farmers appetite for updating farm equipment as proven at record setting farm equipment prices at auctions conducted by Schrader throughout Ohio this past winter.

Strong commodity prices increase the demand for equipment and a short supply of new and low hour used equipment worked together to create an environment for feverish bidding at farm equipment sales.  Most of the late model equipment has been selling at prices 20 percent above the auction prices of a year ago.

Rex Schrader,
Schrader Real Estate and Auction