A Canadian-based company, Hudye Farms, is looking to sell its 18-thousand acres of cropland in eastern Colorado and western Kansas.
It’s said to be one of the largest cropland sales that part of the country has ever seen.
The asking price—49 million dollars—which is a little over 27-hundred dollars per acre.
“It’s a unique opportunity for somebody to come in—whether some local farmers or a large investor or two—to basically put themselves on the map with a 17,000-plus acre farm. Strong cash flow, strong tenants—it’s a great property,” says Bart Miller, managing broker of Mason & Morse Ranch Company, the real estate firm that is handling the sale.
With the recent drop in commodity prices, some are wondering if farmland prices have peaked. But Miller tells Brownfield they’re not seeing a drop-off in demand.
“We just had 3,400 acres in Nebraska come up for sale and we’re seeing full-price offers come in—multiple offers,” Miller says, “So there is definitely still a demand out there, both from local farmers—which is really carrying most of the demand right now—but there are still some large investor types that are looking to place money for security.”
As for concerns that the “farmland bubble” may be ready to burst?
“We don’t think it’s a bubble,” Millers says. “Will prices level out? Eventually, everything has to level out. But from what we’re seeing the surge in farmland demand right now is still fairly high, at least in the first quarter.
“We’ll see what happens with commodity prices and some of the political games—and some of the international markets this summer—and that will probably tell the story if this trend continues next year.”
The Huyde Farms property is generally located around Burlington, Colorado and Goodland, Kansas. Most of the ground is in dryland—or non-irrigated—wheat and corn, with about 18-hundred acres of irrigated land producing corn.
Miller says the farm is fully leased.