Striving for perfection is a dream come true and in 2016 we once again achieved a near perfect sales success rate on the land and real estate auctions we conducted! This kind of success isn’t an accident, it only happens with an extensive understanding of market trends and conditions, along with a wealth of experience gained from decades of experience and a reputation of success for being a leader in the auction industry, as our motto states “SUCCESSFUL AUCTIONS DON’T JUST HAPPEN, THEY’RE PLANNED!
Our sales volume in 2016 resulted in another successful year in the auction and real estate profession with a high volume of sales which was near the top and in line with of our typical annual gross sales for land sold, with our consistency and performance continuing as it has throughout the 80+ year history and three generations of continuous service in the real estate and auction professions provided by our firm since it was originally founded in Flandreau, SD in 1932. Annually, Chuck Sutton and his associates strive to provide unparalleled experience to service their clientele. In 2016 Chuck Sutton Auctioneer & Land Broker, LLC, once again remained a proven leader in agricultural land & acreage auctions, as well as auctions of farm equipment, personal property and a wide variety of auctions of all types.
Chuck Sutton has long been recognized as a leader in the auction profession, not only by his clientele, but also by his peers has he has been bestowed with the prestigious honor of induction into both the South Dakota and Minnesota Auctioneers Association Halls of Fame. Our firms successes in the auction and real estate professions, is not without support of family, auction associates and staff, a wonderful clientele of business professionals, the countless individual sellers that have placed their faith in our auction abilities, the terrific following of buyers and bidders that are frequent attendees at our auctions and the many friends we have accumulated throughout our auction and real estate career. Chuck’s philosophy in business and in life are instilled in the principles of honesty, integrity and empathy and the belief – that “A Good Reputation is Your Stock in Trade.”
Questions continue to be presented to us about the strength of the land market and where we are in terms of value relevant to the “Bubble in Values” experienced throughout portions of 2012 & 2013. After a slight settling back in land values of 20% to 25% off the historic highs experienced throughout the “Bubble Period” – although Land Values and Demand for Land continue to remain very strong. To put things in perspective concerning land values, I often recite that if a person were to view a trend line from 2005 through 2015 a steady incline in values would be perceived, although for about the 2nd half of 2012 and through the 1st half of 2013 the “Bubble” would be observed that occurred during the period of record commodity prices of $7.50/bu. corn and $17.50/bu. soybeans, subsequently it is my belief and observance that the land market settled “Post Bubble” at levels higher than the “Pre-Bubble Values”, thus taking the “Bubble” out of play, the trend line would project values higher than the Pre-Bubble levels. Hence, it is our belief that the land values for the most part have settled in at levels still well above the pre-bubble values of 2011 and prior years, thus it is our observation that throughout 2016 the Land Market remained – Alive and Well!!
In 2016 the brightest spot was the terrific crops, as many operators experienced record corn, soybeans and other crop production – especially in east central and southeast SD, SW MN & northwest IA,! Hopefully, in 2017 we will see a rally in grain prices and improvement in the cattle and other livestock markets. It appears that low interest rates will continue, as together these factors of – Production, Price, Interest Rates, Global Economic Influences, the Value of the US Dollar as compared to Other Currencies, and other extenuating Influences that are beyond our control, may affect future land market conditions and will be key influences in order for the land market to remain firm and sustainable. In agriculture we all seem to face each coming year with a sense of optimism, with a positive outlook for prospects for sufficient to abundant production and a hope that we might find a climate for higher commodity prices and with that said, we believe there are prospects for continued strength in the land market in 2017.
Our land sales in 2016 included some noteworthy results including a small 40 acre parcel of land located near Harrisburg, SD that sold for $12,750.00/Ac., additionally several other auctions in Lincoln, Co., SD sold for $8,150.00, $8,100.00, $9,500.00 and $7,550.00 per acre; noteworthy Minnehaha County, SD sales sold for $10,100.00, $7,700.00, $8,300.00 per acre along with many others with mixtures of cropland and pasture; a 49 acre parcel of development land in the City Limits of Brandon, SD sold for $19,500.00/Ac.; a very good 160 acre unimproved farm in Moody County, SD sold for $9,400.00 per acre, additionally numerous other Moody County farms with varying degrees of tillable and nontillable land sold very well; several Lake County, SD parcels including three near Rutland, SD sold for $8,700, $8,000.00 & $7,725.00 per acre and two others near Chester, SD sold for $7,850.00 & $7,800.00 per acre; Minnesota farms in Rock, Pipestone, Lincoln, Murray, Lyon, Redwood & Cottonwood Counties with high or relatively high percentages tillable sold for $9,900.00, $8,175.00, $8,000.00, $7,900.00, $7,500.00 & $6,700.00 per acre and farms with lower percentages tillable and mixed utilizations sold at lower price levels; and a couple of large parcels in northwest Iowa with mixtures of crop and non-cropland acres sold for $12,200.00 and $10,400.00 per acre, to name just a few of our successful 2016 auctions. We invite you to visit our website at www.suttonauction.com to see all of our 2016 land auction results, along with an archive of land auction results for many previous years.
In 2016 the majority of the farms with relatively high or very high percentages tillable sold in the $6,000.00 to $10,000.00 per acre price range and in the current market it takes a tract of land of extremely high caliber to bring upwards of $10,000.00 per acre. Furthermore, “Good Pasture” with quality grass, good fences and a decent water supply was and is a highly sought after commodity – especially for the cow-calf operator.
Cropland in many cases is still yielding a 3% to 4% return on investment – outperforming CD’s and other investments, which is enticing as land as an investment affords a high degree of security as it is a tangible investment which won’t yield a negative or 0% return, due to the fact that there are ample farm operators that are ready, willing and able to rent land. At the close of 2016 we witnessed many land buyers that remain “Sold on the Market” – especially those that had strong equity positions, as there remain many individuals that are anxious to invest in agricultural land as a safe haven for the investment of their dollars. One key factor remains – That being that the economic theory of “Supply and Demand” remains in full force & effect, as it appears that there continues to be an unbalanced demand for high quality cropland, as there seems to remain a greater demand and supply of qualified buyers in the marketplace, than there is land available for purchase.
In summary, it’s still a GREAT TIME TO SELL! – As the Demand for High Quality Land & Pasture Outpaces Supply. As we begin 2017, it appears that the mindset of farm operators and investors alike in the market for land is that they have a relatively high degree of optimism and remain competitive in their pursuit and acquisition of land, and that said – the auction method of marketing in conjunction with our knowledge and professional experience creates a forum that exposes your property to the maximum number of qualified buyers, resulting in the true “Fair Market Value” for your property.
A Sincere “Thanks” to all of the sellers we had the privilege to serve, a big Thank You also, to all of the buyers, bidders and others who attended our real estate and personal property auctions, and especially to those who continue to spread the accolades concerning our auction services and staff, our professionalism, experience, reputation and integrity. Again, THANK YOU ALL for your business and continued support! We look forward to working with you in 2017.
Chuck Sutton79.83 Acres of Unimproved Rutland Twp., Lake Co., SD Land $8,600.00/Acre
80.85 Acres of Unimproved Rutland Twp., Lake Co., SD Land $8,700.00/Acre
74.15 Acres of Unimproved Rutland Twp., Lake Co., SD Land $5,200.00/Acre
80 Acres of Unimproved Sverdrup Twp., Minnehaha Co., SD Land $8,000.00/Acre
39.07 Acres of Unimproved Sverdrup Twp., Minnehaha Co., SD Land $8,300.00/Acre
80 Acres of Unimproved Sverdrup Twp., Minnehaha Co., SD Land $6,950.00/Acre
49.67 Acres of Unimproved Sverdrup Twp., Minnehaha Co., SD Land $4,100.00/Acre
80 Acres of Unimproved Alliance Twp., Moody Co., SD Land $4,000.00/Acre
31.16 Acres of Unimproved Eden Twp., Pipestone Co., MN Land $3,700.00/Acre
160 Acres of Unimproved Alliance Twp., Moody Co., SD Land $9,400.00/Acre
160 Acres of Unimproved Dale Twp., Cottonwood Co., MN Land $7,800.00/Acre
160 Acres of Unimproved Shaokatan Twp., Lincoln Co., MN Land $5,800.00/Acre
160 Acres of Improved & Unimproved Shaokatan Twp., Lincoln Co., MN Land $4,700.00/Acre
60 Acres of Unimproved Springwater Twp., Rock Co., MN Land $9,900.00/Acre
160 Acres of Improved & Unimproved Drammen Twp., Lincoln Co., MN Land $4,750.00/Acre
160 Acres of Unimproved Orland Twp., Lake Co., SD Land $7,300.00/Acre
73.65 Acres of Unimproved Spring Lake Twp., Kingsbury Co., SD Land $5,400.00/Acre
74.46 Acres of Unimproved Gray Twp., Pipestone Co., MN Land $8,000.00/Acre
62.5 Acres of Unimproved Lynn Twp., Moody Co., SD Land $9,200.00/Acre
135.17 Acres of Unimproved Sully Twp., Sully Co., SD Land $4,700.00/Acre
60.99 Acres of Unimproved Grange Twp., Pipestone Co., MN Land $6,700.00/Acre
54 Acres of Unimproved Ramsey Twp., McCook Co., SD Land $4,800.00/Acre
80 Acres of Unimproved Summit Twp., Lake Co., SD Land $6,500.00/Acre
306.46 Acres of Unimproved Franklin Twp., Jerauld Co., SD Land $3,750.00/Acre
210.37 Acres of Improved Appomattox Twp., Potter Co., SD Land $2,000.00/Acre
181.66 Acres of Unimproved Appomattox Twp., Potter Co., SD Land $3,200.00/Acre
30.55 Acre Improved Acreage in Burk Twp., Minnehaha Co., SD $317,500.00
20.72 Acre Improved Acreage in Hartford Twp., Minnehaha Co., SD $351,000.00
7.88 Acre Improved Acreage in Jefferson Twp., Moody Co., SD $240,000.00
75.59 Acres of Unimproved Medary Twp., Brookings Co., SD Land $4,350.00/Acre
1.3 Acre Lake Lot, Brookings Co., SD $53,000.00
10.36 Acre Improved Acreage in Moulton Twp., Murray Co., MN $140,000.00
8.65 Acres Improved Acreage in Clare Twp., Moody Co., SD $242.000.00
149.64 Acres of Unimproved Ellsborough Twp., Murray Co., MN Land $5,600.00/Acre
143.69 Acres of Unimproved Red Rock Twp., Minnehaha Co., SD Land $7,700.00/Acre
50 Acres of Unimproved Elmer Twp., Pipestone Co., MN Land $4,700.00/Acre
157.06 Acres of Unimproved Elmer Twp., Pipestone Co., MN Land $6,700.00/Acre
80 Acres of Unimproved Shelbourne Twp., Lyon Co., MN Land $5,900.00/Acre
8.24 Acre Improved Acreage in Canton Twp., Lincoln Co., SD $127,500.00
230.60 Acres of Unimproved Blinsmon Twp., Moody Co., SD Land $5,400.00/Acre
9.93 Acre Improved Acreage in Clare Twp., Moody Co., SD $180,000.00
160 Acres of Unimproved Lynn Twp., Lincoln Co., SD Land $3,700.00/Acre
134 Acres of Unimproved Franklin Twp., Lake Co., SD Land $7,850.00/Acre
154.55 Acres of Unimproved Franklin Twp., Lake Co., SD Land $7,800.00/Acre
160 Acres of Unimproved Lynn Twp., Lincoln Co., SD Land $8,150.00/Acre
7.03 Acre Improved Acreage in Hartford Twp., Minnehaha Co., SD $397,500.00
80 Acres of Unimproved Spring Lake S Twp., Kingsbury Co., SD Land $7,000.00/Acre
40 Acres of Unimproved Springdale Twp., Lincoln Co., SD Land $12,500.00/Acre
48.85 Acres of Unimproved Developmental Land, Brandon, Minnehaha Co., SD $19,500.00/Acre
80 Acres of Unimproved LaValley Twp., Lincoln Co., SD Land $8,100.00/Acre
238 Acres of Unimproved Eureka Twp., Aurora Co., SD Land $2,800.00/Acre
160 Acres of Unimproved White Lake Twp., Aurora Co., SD Land $2,950.00/Acre
240 Acres of Unimproved White Lake Twp., Aurora Co., SD Land $2,100.00/Acre
300.75 Acres of Unimproved Egan Twp., Moody Co., SD Land $5,100.00/Acre
60.78 Acres of Unimproved Egan Twp., Moody Co., SD Land $8,500.00/Acre
85.75 Acres of Unimproved Rose Dell Twp., Rock Co., MN Land $7,900.00/Acre
140.17 Acres of Unimproved Edison Twp., Minnehaha Co., SD Land $7,100.00/Acre
160 Acres of Unimproved Wayne Twp., Lake Co., SD Land $5,800.00/Acre
160 Acres of Unimproved Palatine Twp., Aurora Co., SD Land $4,375.00/Acre
80 Acres of Unimproved Westline Twp., Redwood Co., MN Land $7,500.00/Acre
80 Acres of Unimproved Westline Twp., Redwood Co., MN Land $6,300.00/Acre
80 Acres of Unimproved Spring Creek Twp., Moody Co., SD Land $5,800.00/Acre
240 Acres of Unimproved Fairview Twp., Hanson Co., SD Land $4,700.00/Acre
80 Acres of Unimproved Perry Twp., Davison Co., SD Land $4,900.00/Acre
231 Acres of Unimproved Butler Twp., Sanborn Co., SD Land $4,000.00/Acre
240 Acres of Unimproved Fairview Twp., Hanson Co., SD Land $4,750.00/Acre
80 Acres of Unimproved Perry Twp., Davison Co., SD Land $4,900.00/Acre
231 Acres of Unimproved Butler Twp., Sanborn Co., SD Land $4,000.00/Acre
134 Acres of Unimproved Canton Twp., Lincoln Co., SD Land $7,500.00/Acre
80 Acres of Unimproved Enterprise Twp., Moody Co., SD Land $4,200.00/Acre
150.75 Acres of Unimproved Logan Twp., Minnehaha Co., SD Land $4,900.00/Acre
158.92 Acres of Unimproved Benton Twp., McCook Co., SD Land $5,600.00/Acre
152.16 Acres of Unimproved LeRoy Twp., Lake Co., SD Land $7,225.00/Acre
161.25 Acres of Unimproved Edgerton Twp., Hanson Co., SD Land $5,450.00/Acre
159.01 Acres of Unimproved Fremont Twp., Moody Co., SD Land $6,350.00/Acre
160 Acres of Unimproved Gray Twp., Pipestone Co., MN Land $6,275.00/Acre
40.11 Acres of Unimproved Lynn Twp., Lincoln Co., SD Land $9,500.00/Acre
80.29 Acres of Unimproved Lynn Twp., Lincoln Co., SD Land $7,550.00/Acre
79.36 Acres of Unimproved Lynn Twp., Lincoln Co., SD Land $7,550.00/Acre
46.18 Acres of Unimproved Parnell Twp., Brookings Co., SD Land $275,000.00
80.53 Acres of Unimproved Rock Lake Twp., Lyon Co., MN Land $8,175.00/Acre
639.52 Acres of Unimproved East Orange Twp., Sioux Co., IA Land $12,200.00/Acre
221.59 Acres of Unimproved East Orange Twp., Sioux Co., IA Land $10,400.00/Acre
8.52 Acre Improved Acreage in Split Rock Twp., Minnehaha Co., SD $292,500.00
136.35 Acres of Unimproved Split Rock Twp., Minnehaha Co., SD $10,100.00/Acre
157.7 Acres of Unimproved Split Rock Twp., Minnehaha Co., SD $7,700.00/Acre
157.55 Acres of Unimproved Grafton Twp., Miner Co., SD Land $6,025.00/Acre
101.43 Acres of Unimproved Sverdrup Twp., Minnehaha Co., SD Land $5,600.00/Acre
159.5 Acres of Improved Troy Twp., Pipestone Co., MN Land $4,500.00/Acre