WOODBURN, Ind. – Three tracts of cropland totaling 121.3 acres in East Allen County, Ind., recently sold for $2.42 million, or $19,984 per acre.

“Several things are noteworthy about this result,” said R.D. Schrader, president of Schrader Real Estate and Auction Co., who conducted the auction. “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,” he added.

He told Farm World the reason this swath of farmland sold so high was because, “The farm was excellent, with consistent soils and a very good drainage outlet. The 120 acres laid well topographically (a detailed description or representation on a map of the natural and artificial features of an area), but was also one large square field for ease of farming.

“The farm was located in a very strong farming community,” he said, adding, “No formal appraisal had been completed on the farm.”

Jerry Ehle, Schrader Real Estate and Auction Co., managing broker, said the auction attracted 25 bidders from Indiana and Ohio.

“A big plus was that the farm was rectangular, and the tracts were adjacent,” he said. “The soils were primarily Hoytville silty clay, with some pockets of Nappanee Silt Loam.”

Schrader said, “The winning bidder was a grain/livestock farmer whose base operation was approximately 50 miles away, but had farmland in the area. The runner-up bidder was a grain farmer whose base operation was approximately 25 miles away.

“There were other area farmers also in the mix,” he added. “Investors were present and even bid earlier on, but not competitive toward the end of the bidding.”

The farm runs approximately 655 feet along Indiana Route 101 and more than 2,650 feet along Edgerton Road in Jackson Township in East Allen County.

Schrader said farmland demand has remained strong and stable.

“Farmers and investors may focus more on acquiring land as the planting season fast approaches,” he said. “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.”

He added, “The farm will continue to be operated for grain production.”

Located in Columbia City, Ind., Schrader Real Estate and Auction Co. is a leading auctioneer of agricultural land and equipment throughout the United States. The company is a five-time USA Today/National Auctioneers Association Auction of the Year winner.