Sometimes a sale goes just the way you hope it will. This was one of those. The land is near Hope in Steele County, between Owatonna and the Twin Cities metro, with Mankato and Rochester's Mayo Clinic within driving distance.
Two brothers and their wives grew up on this farm. They had already sold the building site, and the remaining cropland was ready for its next owner. Here's how a well-marketed live auction brought out a crowd.
The short version: I represented the sellers of 111.19 acres near Hope in Steele County, about 106 of them tillable, with a CPI of 93.1. After about eight weeks of marketing, it sold at a live auction near the farm with more than 15 registered bidders. It closed on March 27, 2024.
Key takeaways
- High-CPI cropland draws a crowd. This sale had more than 15 registered bidders, 6 of them active, and about 30 people attended.
- About eight weeks of marketing, online and on printed flyers, built that turnout.
- A local venue near the farm makes it easy for neighbors to show up and bid.
- A buyer who can't attend can still bid through an attorney with a power of attorney.
The property at a glance
| Location | Near Hope, Steele County, MN |
|---|---|
| Size | 111.19 acres; about 106 tillable, the rest woods and waste |
| Soils | CPI 93.1 |
| Neighbor | Next to a large agronomy co-op and grain elevator |
| Sale method | Live auction at a nearby snowmobile club building |
| Closed | March 27, 2024 |
| My role | Listing agent for the sellers |
What did the sellers want?
The sellers felt they could earn a better return elsewhere, and they had decided not to leave the land to their children. They found me through an advertisement, and together we chose an auction as the sale method.
How did we market the farm?
- About 8 weeks of marketing before the auction
- Printed flyers posted in about 20 locations around the area
- Online: MLS, LandsofAmerica, Land.com and our brokerage website
- Making it easy for the sellers: I drove to their homes to sign the listing papers and purchase agreements
Pro tip: Put flyers where farmers actually go, like the co-op, the elevator, the bank and the cafe. Local buyers are often the strongest bidders.
How did auction day go?
The auction was held at a snowmobile club building near the farm, and the club was happy to host us. More than 15 bidders registered, 6 bid actively, and about 30 people came, some just to watch.
The winning buyer grew up in the area and was on vacation that day, so his attorney bid for him in the room while I kept him updated by phone and text. After the sale, I worked with his attorney on the purchase agreement, the signatures and the power of attorney paperwork, and sent over all the sellers' documents.
How does a live farmland auction work?
- Choose the method: Compare a live auction, an online auction and a traditional listing for your goals.
- Prepare the documents: Listing agreement, purchase agreement, disclosures, maps and soils.
- Market for several weeks: Online, in print and locally.
- Register bidders: Bidders register before the sale and can bid in person or through a representative.
- Auction day: The auctioneer runs the bidding, and the winning bidder signs the purchase agreement.
- Closing: Attorneys and the closing agent finish the transaction.
Lessons for landowners
- Know your CPI. High productivity is a selling point, so put it front and center.
- Give marketing enough time. Eight weeks let word spread through the area.
- Pick a venue close to the farm. It brings out neighbors and local investors.
"No farm is created equal. A high CPI doesn't automatically mean a farm yields well, so I'm very detailed in my farm listings. I include tile maps, yield data and even fertility data, so buyers can see how the land really performs. I also advise my clients on farm leases, whether they're keeping a renter, changing terms or selling with a lease in place."
— Jen Busch
The bottom line
Good soils, steady marketing and a friendly local venue added up to a smooth sale. I attended the sellers' closing and sent them closing gifts afterward.
Wondering if an auction is right for your farm?
I'd be glad to compare an auction with a traditional listing for your land. Request your free farmland valuation or call or text me at (507) 923-7657. You can also browse our current farm and land listings.
Frequently Asked Questions About Live Farmland Auctions
What is CPI and why does it matter?
The Crop Productivity Index rates soil productivity on a 1 to 100 scale. This farm's 93.1 CPI was a key selling point.
How long should a farm be marketed before an auction?
This farm had about eight weeks of marketing, which was enough to bring more than 15 registered bidders.
Can someone bid at an auction for a buyer who isn't there?
Yes. In this sale, the buyer's attorney bid for him, and the paperwork included proof of power of attorney.
Where are live land auctions held?
Often at a community building near the farm. This one was held at a local snowmobile club building.
How many people attend a farmland auction?
It varies. This sale had more than 15 registered bidders, 6 active bidders and about 30 people in attendance.
Does a high CPI mean a farm yields well?
Not always. CPI rates the soil's potential, but drainage, tile, fertility and management all affect real yields. That's why I include tile maps, yield data and fertility data in my farm listings whenever they're available, and I help landowners with lease questions too. See my tips for leasing out your farm.
Disclosure: Details come from Jen's transaction records. Client names and sale prices are left out for privacy. This case study is general information, not legal or tax advice, and it does not guarantee any result. Every property and sale is different. Equal Housing Opportunity.
Sold by Jen Busch while affiliated with LandProz Real Estate, a previous brokerage, before she founded United Country Real Estate | Midwest Home & Farm Realty.