Saturday, June 4, 2011

Pocahontas Farm Auction: $8900/Acre

An eighty acre tract of flat farmland five miles south and four miles east of Pocahontas was auctioned this morning for $8900/acre. It was the Hermon Tjaden property, currently farmed by tenant Bob Beneke. The 2001 cash rent is $15,400, according the auctioneer's statement today.

Bidding was brisk. The auctioneer, Lowderman Auction and Real Estate, said there would be no breaks or timeouts. However he did pause after about five minutes of bidding to acknowledge the property "can be a little wet." Five minutes later the auction was complete.

The land is 80% Webster soil. The tract has a corn suitability rating (CSR) near 84. Pocahontas County's average CSR is only 74. The CSR system assumes drain tile has been added wherever necessary.

Dividing the bid price by the CSR yields a ratio of $106 per CSR point. Earlier this spring a 120 acre Rolfe parcel sold for $101 per CSR point.

One audience member left the auction saying, "I'm going home to put up some For Sale signs."

On auction day the local price for corn was $7.31; for soybeans, $13.75. Both prices are higher than in March when the Rolfe auction occurred.

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