MWA Auctions Illinois Farm for $14.9 Million

Rhea-AI Summary

Murray Wise Associates (MWA) recently facilitated the sale of 860 acres of farmland in Illinois for $14.9 million, at a rate of $17,325 per acre. The multi-parcel auction method allowed buyers to bid on individual tracts, resulting in all tracts being sold to one buyer. This sale demonstrates the continued strength of the Illinois farmland market, despite higher interest rates and lower commodity prices. MWA, acquired by Farmland Partners Inc. (NYSE: FPI) in November 2021, is a leading national agricultural real estate auction and brokerage company.

Positive

• The sale of the farmland at $17,325 per acre is at the top end of farmland transactions for the area, indicating strong demand and high value in the Illinois farmland market.
• The multi-parcel auction method allowed for flexibility in bidding and ultimately resulted in all tracts being sold to one buyer, maximizing the farm's value as one unit.
• The acquisition of MWA by Farmland Partners Inc. (NYSE: FPI) in November 2021 strengthens its position in the agricultural real estate market.

Negative

• None.

CHAMPAIGN, Ill.--(BUSINESS WIRE)-- Murray Wise Associates (MWA) announced today that it recently helped a client secure $14.9 million for 860 acres of farmland in Moultrie, Piatt, and Douglas Counties, Illinois.

"At $17,325 per acre, the sale is at the top end of farmland transactions for the area," said Eric Sarff, MWA’s president.

The farm was offered in 11 separate tracts via the multi-parcel auction method, with all tracts selling to one buyer.

“The multi-parcel method allows buyers to bid on any tract, or combination of tracts, and I believe it gives buyers more flexibility than other sales methods,” Sarff explained. “It also helps sellers achieve maximum results by enabling bidders of individual tracts to compete against larger buyers seeking big assemblages of acreage.”

This proved to be true during the auction, which included bids from potential buyers looking to acquire individual tracts and smaller combinations of tracts. Ultimately, the farm was worth the most money as one unit.

“This region is well-known for having productive soils and high-quality farmers,” said MWA vice president Elizabeth Strom, who oversaw the auction process. “When a farm comes up for sale in this area, there is always fierce competition.”

The sales price that MWA achieved illustrates the continued strength of the Illinois farmland market, according to Strom.

“Even with higher interest rates and lower commodity prices relative to a year ago, we continue to see strong demand for farmland in the state,” she said. “It’s an asset class that continues to be viewed favorably by both farmers looking to add to their existing operations and investors seeking to balance their portfolios with hard assets that produce steady income.”

MWA, which is headquartered in Champaign and has a satellite office in Clarion, Iowa, is a leading national agricultural real estate auction and brokerage company. The company also provides management services for farmland assets. MWA was acquired by Farmland Partners Inc. (NYSE: FPI) in November 2021. Additional information: www.murraywiseassociates.com or (800) 607-6888.

Forward-Looking Statements

This communication includes "forward-looking statements" within the meaning of the federal securities laws, including, without limitation, statements with respect to the outlook of Farmland Partners Inc. ("FPI") and Murray Wise Associates LLC ("MWA") and proposed and pending farmland auction, brokerage, financing and asset management activities. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" or similar expressions or their negatives, as well as statements in future tense. Although FPI and MWA believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance and actual results could differ materially from those set forth in the forward-looking statements. Any forward-looking information presented herein is made only as of the date of this communication, and FPI and MWA do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231204065799/en/

Eric Sarff

eric@mwallc.com

Source: Murray Wise Associates

FAQ

How much did the farmland in Illinois sell for?

The farmland in Illinois sold for $14.9 million, at a rate of $17,325 per acre.

What is the significance of the multi-parcel auction method in this sale?

The multi-parcel auction method allowed buyers to bid on individual tracts, resulting in all tracts being sold to one buyer, maximizing the farm's value as one unit.

What is the current state of the Illinois farmland market?

Despite higher interest rates and lower commodity prices, the Illinois farmland market continues to demonstrate strength and demand.

Who acquired Murray Wise Associates (MWA) and when?

Murray Wise Associates (MWA) was acquired by Farmland Partners Inc. (NYSE: FPI) in November 2021, strengthening its position in the agricultural real estate market.