Indiana Land Auctions Getting Mixed Results?!
Recent farmland real estate auctions in Indiana have brought mixed results for buyers and sellers. Reports of no sales at auctions in the midwest and sealed bid / minimum bid auctions having no sales or non competitive buying indicate that a shift to listings or ‘listing combinations’ will become more frequent in 2015. Full reports of land values can be found in the the PAER 2014 report released back in August of 2014.
While there are many factors that determine the value of farmland (E.g. your cash position, soil quality, location grain storage, drainage, point rows, etc), we will be keeping a close eye on land sales and auctions over the next few months to help paint a more accurate picture of what is going on the market today.
When done right, under the correct market conditions, land auctions can do a great job for both the seller. When considering an auction, ask questions and rely on those that have experience with both private, public auctions and listing combinations.
Signs seem to point toward high quality land still commanding top dollar. Whether it’s soil quality, location or drainage – all of these factors combined with a high level of wealth from record farm incomes have left plenty of ready buyers in the marketplace.
High cash rents / leases have left a bit of uncertainty in the market, but as these factors stabilize to accommodate lower expected returns, we should see more stabilization in farmland values.
Stay tuned as we keep you updated on the latest farm auctions in West Central Indiana!!
information obtained from reliable sources, deemed accurate, but not guaranteed.