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Monday, Apr. 27, 2015

Record yield: Rossie land goes for $8,740 per acre

Saturday, November 27, 2010

(Photo)
Clint Jones of J and H Auctions searches for the highest bid during Friday morning's land sale of about 160 acres of prime farmland south of Rossie. The sale drew more than 100 interested parties to the Royal Community Center to witness the land go for a Clay County record $8,740 per acre. (Photo by Gabe Licht).
More than 100 individuals filed into the Royal Community Center shortly before 10 a.m. Friday. The crowd included farmers, spectators and potential buyers for precisely 157.6 acres of farmland one mile south of Rossie on 200th Avenue.

Stephen Binder, the previous owner of the land, was unable to attend but listened to the action by phone.

Those associated with the auction anticipated the Clay County land to be arecord-breaker, drawing large crowds, which required the sale to take place in the community center, rather than onsite where most auctions take place.

Auctioneer Clint Jones was not disappointed.

Jones, of J and H Auctions, started the bidding at the county's previous record of $7,500 per acre. Dozens of bids from a handful of farmers, two breaks and 30 minutes later, the ground was sold at $8,740 to Roger Roetman.

"This is basically an investment," the Sheldon farmer said after his final bid secured the purchase.

After the bid started at $7,500, it quickly soared to $8,150 before a break was requested, allowing a potential buyer to step outside and make a phone call.

A second break took place at the $8,600 plateau, after which the bid started climbing by multiples of $10 and $20 rather than $25, $50 and $100.

"The style of bidding doesn't make much of a difference at the end of the day," Roetman said. He acknowledged he has quite a bit of experience with bidding as he has attended numerous land sales in the past.

Jones has administered his fair share of auctions throughout his career and shared, "over west of here, there has been higher prices, but this is the highest for Clay County."

"We've sold some as good as this, but none better," he told the crowd during the bidding process. "... This is a big deal, a huge deal. It probably won't come up for sale in our lifetimes again."

In a friendly wager, he had predicted a price of $8,750.

"Interest had been going up," he said, "which made me think it'd go higher."

He went on to say of the bidders, "They came from all over."

A couple factors were responsible the large crowd and, ultimately, the hefty price tag for the ground boasting what is known as Marcus, Primghar soil.

"Marcus, Primghar soil is the best in the state," Jones analyzed.

The benchmark for rating ground -- known as Corn Suitability Rating -- stood at 81.1 for one 80-acre parcel and 82 for the other, for a combined rating of 81.6.

"That's as good as there is in the county," Jones assessed. "They don't get any better than that."

In addition to the quality of the land, Jones pointed out a few other key factors.

"There is low interest at the bank," he said of those needing to borrow for their investments. "Also, commodities prices are as high as they have ever been."

With those factors in mind, Jones concluded, "This is a solid investment."


Comments
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8740 an acre is not an investment!! The small guy or a young person trying to get started in farming doesn't stand a chance!! $1,377,424 for 157.6 acres = INSANE!! How do you make enough money on that amount of acres to make it pay off. You buy it at a record high hoping to..... sell it at a profit?

-- Posted by fireslayerdad on Sat, Nov 27, 2010, at 7:35 PM

Ridiculous price to pay for a piece of farmland, but we will help pay them for it with government subsidies. Ridiculous farmers are still receiving these with commodity prices so high.

-- Posted by CITIZEN SAM on Sat, Nov 27, 2010, at 8:58 PM

Many mainstreet businesses and businesses in the "development parks" also get gov't subsidies in many forms - TIF, reduced/free utilities and other business programs to help them retain capital for their business. Why do so many people make the assumption that the American Farmer is somehow supposed to be above all that. He is running a business as well and the American Farmer IS feeding the world. When you decide to bash them for subsidies and decent commodity prices, think about what you have invested in your career or job, yours is likely decent business clothing and a vehicle;then think about what farmers have invested, tractors, planters, rippers, plows, discs, seed, chemicals, fertilizers, combines, manure handling equipment, keeping up with all the newest laws from everyone from EPA to IRS and all the continuing education necessary to maintain those credentials. Then add in the cost of the land and tell me how you can fault them for being on the gov't programs, especially since we are required to report crops raised and value amount or if was cash rent and so forth. I am pretty sure none of your cars or business clothing cost a cool quarter million which is what a combine costs these days

-- Posted by mscitizen on Sat, Nov 27, 2010, at 11:03 PM

Someone had more credit than brains.

-- Posted by lili5044 on Sun, Nov 28, 2010, at 10:14 AM

I'm just shocked that there was stuff happening in the Royal Community Building.

-- Posted by SystemofaDown on Mon, Nov 29, 2010, at 1:41 PM

Nice, systemofadown... @@

-- Posted by notinia on Tue, Nov 30, 2010, at 2:06 PM

What recession?

-- Posted by helped_myself on Wed, Dec 8, 2010, at 5:14 PM


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