PITTSFIELD, Ill. — Strong demand for income-producing land has resulted in a growing number of farm auctions in Illinois and throughout the United States.
“The opportunity for landowners to capitalize on the current market is incredible. There is high demand for quality farmland, commodity prices are at a three-year high and interest rates remain low,” said Joe Cebuhar, an Illinois Land Specialist for Whitetail Properties, a leading national real estate company specializing in hunting, farm, ranch and timber properties.
He noted that while some farm owners prefer a traditional sale, in most cases the preferred format for selling tillable and income-producing land is through auction, which is driving increased demand for the services of Whitetail Properties’ auction division, Ranch & Farm Auctions.
Demonstrating this trend was the recent successful auction of the Freeman Farm in Jacksonville, which has 109.3 acres of tillable ground.
“The farm has been well-maintained, has tile improvements and offers great access from both the west and east sides of the property,” Cebuhar said. “It was positioned to sell, and we had solid buyer participation resulting in a successful auction.”
Ranch & Farm Auctions Director Joe Gizdic predicts the upward trend of rural land auctions will continue given the current state of the land market.
“When it comes to income-producing acreage, auctions will reduce time on the market, create excitement in the marketplace and have producers and investors competing for the opportunity to purchase that tract of land,” Gizdic explained. “Auctions will determine the true market price of a piece of land through competitive bidding, and sellers often will get high bids above and beyond appraised or perceived market values as a result of that competition.”
Cebuhar noted that the buyer regards the Freeman Farm as a generational opportunity.
“The buyer is adding the operation to his portfolio to eventually benefit his kids and their kids. We have been seeing an increasing trend of buyers utilizing land as a long-term investment,” he said.
The buyer and sales price were not disclosed.
Ranch & Farm Auctions is unique in specializing in the ranch and farmland segments, as well as recreational properties. It enables rural land buyers to bid concurrently live on-site, live online and by phone-in bidding in real time.
Operating in 38 states where Whitetail Properties has knowledgeable local agents known as Land Specialists, Ranch & Farm Auctions offers sellers customized marketing plans, a national auction platform and an extensive buyer database to bring more qualified buyer activity and premium bids on auction day.
For more information, visit ranchandfarmauctions.com or whitetailproperties.com.