On August 17th Steve Atwill and GFM auctioned 658 acres in Dunklin County, MO. The acreage was in 8 different tracts with varying characteristics. Twenty seven bidders from multiple states registered. The farm sold to 5 different bidders for an average price of $5,198/acre. The following describes the tract characteristics and how the auction transpired.
Tract 1 & 2: These two tracts totaled 200 acres. Approximately 100 acres are irrigated by a pivot that transferred with the sale, another 35 +/- acres had previously been irrigated by a neighbor’s pivot under an agreement, and 65+/- acres are non-irrigated. This farm did not adjoin a public road and was accessed by a turn row through a neighbor’s property. Soils on these tracts are a mix of loam and silty clay. During the individual bidding the price was $3,700/ac for Tract 1 and $4,000 for Tract 2. When combos were opened the high bid had these two tracts together for an average price of $3,900/acre. Based on financials available the cap rate for this transaction is 4.7%.
Tract 3: This tract is 40 acres and irrigated with a shared pivot. The buyer transferred a 9.36% interest in both an irrigation well and center pivot. Soils are primarily a fine sandy loam. The high bid was $5,200/acre. Based on financials available the cap rate for this transaction is 3.6%.
Tract 4 & 5: Tract 4 is 80 acres, precision leveled with silty clay loam soils. This tract’s sales price was $6,100/acre. Tract 5 is 160 acres, pivot irrigated, with loam soils. The pivot and power unit transferred. This tract sold for $5,600/acre. These two were purchased by the same buyer under the individual bidding. Together, the tracts averaged $5,766/acre. Based on the financials available the cap rate for these two properties is 2.85%.
Tract 6 & 7: These two tracts totaled 138 acres and sold together as a combination bid. Tract 6 is 80 acres, precision leveled with clay soils. During the individual bidding, this tract brought $6,300/acre. This farm has the best curb appeal out of all the tracts. Tract 7 is about 40 acres zero graded but needed to be re-leveled. Soils on this tract are silty clay. During the individual bidding this tract brought $2,800/acre. After combinations were opened, these two tracts sold together for $6,000/acre. Based on financials available the cap rate for these two tracts is 3.35%.
Tract 8: This tract is 40 acres with a center pivot. The soils are a mix of silty clay and fine sandy loam. This tract sold at $5,500/acre. Based on financials available the cap rate for this tract is 3%.