Yesterday we auctioned a 160 +/- acres in Clay County, AR, 140.45 +/- acres in Dunklin County, MO, and 23.91 +/- acres in Pemiscot County, MO. Both the Clay and Dunklin County tracts were irrigated by a pivot. The soils are a fine sandy loam. The Clay County tract also included a 50’x90’ shop building. The Pemiscot County tract was in the city limits of Caruthersville, MO. It is currently being cultivated but is zoned for single family residential use.
The Clay and Dunklin tracts sold for $4,000/acre! The Pemiscot tract hit a high bid of $3,000/acre but did not reach the sellers reserve. The Pemiscot tract has residential potential but in the specific area there is not enough speculation for a residential housing development. Therefore, the high bid at our auction accounted for farmland use only. Even with low interest rates, the lack of a strong economy is affecting the sale of transitional cropland properties into housing developments throughout the United States.
On the flip side, it is amazing to see farmland prices continue upwards. Last year a similar property to the Clay County tract sold for approximately $3,500/acre at an auction. The selling price at our auction was 14% above last year’s auction!
By Jeffrey Hignight, Farm Manager and Associate Broker at Glaub Farm Management. Serving Landowners in Arkansas, Mississippi, Missouri, and Tennessee.