For the second time during the month of June, a record land price was reached at a Farmland Sale conducted by Sheridan & Associates on June 26th. This land auction, in which 247 vacant acres located on West Enon Road and Armstrong Road near Fairborn, Ohio, was sold in 4 tracts. The 4 tracts consisted of a relatively flat 77-acre rectangular and completely tillable tract, a 160-acre tract featuring approximately 90 tillable acres and nearly 70 wooded hillside acres, and two 5-acre building lots. Once bidding was completed, the farm sold to 4 buyers for a total price of $1,441,000.
The record price at this auction was reached on the 77-acre tillable tract. During the period from 2003 to 2011, this farmland had averaged 166 bushel/acre corn yields. The final selling price for this tract was $650,000, or $8,454 per acre. This record price per acre exceeded the price of $8,031 per acre for a similar property, reached by Sheridan & Associates at their June 5th 74-Acre Land Auction of property located on Long Road, east of Xenia, Ohio.
This June 26th auction, conducted at the Greene County Fairgrounds in Xenia, Ohio, was attended by approximately 150 people with nearly 30 registered on-site and phone bidders. The farm was owned by the Wilkerson family, who had owned the farm for three generations spanning over 100 years. Charles Pogue Wilkerson originally purchased the farm after selling a Warren County farm he had inherited. The property is located in northwestern Greene County, along the Clark County line, two miles east of Interstate-675 and five miles south of Interstate-70, between Dayton and Springfield. Active bidders during the auction consisted mostly of a mix of area farmland owners and investors.
“The location and size of the farm was definitely a contributing factor in the success of this sale,” noted Matt Sheridan, one of Sheridan & Associates’ auction managers. “During our marketing campaign, we heard from prospective buyers from Arizona, Kansas, Illinois, Indiana, Michigan and all areas of Ohio. We also tracked over 5,000 hits to our Internet auction listing for this property, which assured us that interest was high. The lack of available land combined with sustained increases in crop yields and low interest rates are continuing to preserve strong land prices. If interest rates increase as expected, it will be interesting to see how land prices are impacted.” The Wilkerson sisters were pleased with the sale results and are happy the land will continue to be utilized as farmland by the new owners.
Sheridan & Associates is a real estate, auction and appraisal company specializing in the sale of residential, commercial and agricultural properties throughout Southwest and Central Ohio. Details of this auction and other upcoming/past auctions can be viewed at www.SheridanTeam.com.
(Article provided by Matt Sheridan, Partner with Sheridan & Associates © 2013)