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November 4, 2019
Paul Schadegg, Area Real Estate Sales Manager, and Farmers National Company agents had an active week of auctions in the plains states. The land being sold included high quality cropland in Kansas, combination farms in Nebraska, and grassland in Oklahoma. As harvest works towards completion, land auctions pick up for six to seven weeks into the middle of December before slowing down at the end of the year. With uncertainties still surrounding trade, final crop production, and the resulting grain prices, land buying activity at the start of the fall land sales season remains similar to the past several years.
Good quality, highly farmable cropland in eastern Kansas brought above market value in this week's auction. For the past few years, quality farmland has mostly held its value or strengthened somewhat depending on the buying demand in an area. Mixed use tracts combining pasture, timber, and cropland generally have had less buying interest, but for this auction the tract sold well. Sometimes, lower quality tracts of land will experience a delayed sale in which our agent works with interested buyers and the seller after the auction to come to terms that will get the property sold. This is successful when the agent knows the marketplace and works far beyond the short time that is the auction.
Several auctions in western Nebraska experienced the spectrum of auction outcomes. Agriculture land in this area of the plains many times is a combination of pasture and dryland tillable acres as was the case for these auctions. The agent's hard work and the buying urgency that an auction creates, brought a successful sale and a pleased seller in one auction. The other auction had cautious buyers who were slower to bid. Therefore, the agent is working with the interested bidders and the seller to reach an acceptable sale price for the land. Even when a property doesn't sell when the gavel drops at an auction, Farmers National Company agents work to bring about a successful sale for the seller in most all cases. The Oklahoma auction was an excellent quality, well maintained grassland tract that brought good bidding which resulted in a well satisfied seller.
Public auctions are a good means to assess what is happening in the land market. Of course, sale activity, the attitude of buyers, and the type of land being sold have an influence on sale outcomes as does how successful the marketing effort is and the work of the agent. As the fall auction season progresses, more will be known about the mood of agricultural land buyers in late 2019.
Farmers National Company is auctioning over 12,760 acres from now until the end of the year!
|Category: Agricultural Real Estate News|