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Land Auction Results 08/17/2016

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%.

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