$10,450 per acre in Delaware

August 2, 2016 04:15 PM

A 333-acre Delaware farm sold July 28 for $3,827,250. The farm was located in Kent County and on the edge of Dover, placing it withing the county's Growth Overlay Zone. The farm included a custom brick two-story house, 25,000-square-foot produce packing and cold storage building and other farm buildings. It offered a total of 316 tillable acres with 305 acres center-pivot irrigated.

The auction attracted more than 30 registered bidders who competed vigorously for an hour and a half, reports Joe Bubon of Murray Wise Associates, Champaign, Ill., who conducted the auction, in cooperation with Woltz & Associates, Roanoke Virginia. "There was a lot of energy in the room, and bidding was vigorous. We had 69 bids in 17 combinations, even though the land was offered in only seven tracts," Bubon said."When you get that kind of activity, you're usually going to end up with a successful auction.

"We were very pleased," he continued, "especially with the bidding on the tillable farmland." The 305 acres of irrigated farmland sold for $10,450 per acre. "It helped that this is good, productive, irrigated farmland, but the price per acre was higher than some observers had expected, especially given the falling commodity prices we've seen over the last couple of years. It also helped that the land was in Kent County's Growth Overlay Zone, so some bidders were viewing it as potential future development land," said Bubon. Ultimately, the farm was divided among four different bidders.