Large ag land transaction in north-central Nebraska

corn-irrigate-keya paha county 6-13A large agricultural land transaction recently took place in north-central Nebraska.

The sale involved a 13,440 acre farm in Keya Paha County with 6,400 acres of pivot-irrigated crop ground and 7,000 acres of pasture and hayland, along with grain storage and a cattle feedlot facility.

The sale price—46 million dollars.

Farmers National Company agent Dave Hickey of O’Neill says the farm, which was owned by Iowa-based Summit Farms, was purchased by another outside investor.

“Some of the larger investors and institutional-type buyers, they’ve been willing to continue to look and to buy in this market,” says Hickey, “and, in some cases—and I certainly don’t mean to imply that anyone is overpaying for farm ground—but they’ve been investors and they’ve been willing to get into this market at a level—providing, obviously, that the return looks favorable to them.”

Hickey says the sale breaks down to roughly 5,000 dollars plus per acre for the irrigated crop ground and 1500 to 2000 dollars per acre for the pasture and hayland.

Hickey says the volume of land for sale has fallen off in recent months.

“Our listing volume is down somewhat. It’s not down by a tremendous amount, but it is down somewhat,” he says. “I think what’s happening right now is that there’s a little bit of caution entering into the market, a little bit of ‘looking for answers’, so to speak.

“People are trying to figure out what direction are we going in the market and taking a little bit of a wait-and-see attitude about maybe listing and selling real estate and/or potentially buying real estate. Certainly, if it’s across the fence from somebody, there’s still good, solid interest.”

Hickey worked with another Farmers National agent, Bob Litz, on the Keya Paha County transaction.

AUDIO: Dave Hickey

Link to a Farmers National Company news release

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