Steffes Group


A Steffes Group Innovation: Timed Online Auction for Land Rents Gets Strong Response

Steffes Group Land Rent Auction

A Steffes Group Innovation: Timed online auction for land rents gets strong response.

Land owners who lease their land to farmers have traditionally relied on private negotiations. But the owner of more than 1,600 acres in Harrison County, Missouri decided on a different approach – a land rent auction for three-year lease contracts, with Steffes Group handling the bidding.

“This land had been farmed by the same family for three generations. They decided to retire but keep the land as an investment,” said Steffes representative Tim Meyer. While some live rent auctions have been used in the past, Steffes Group personnel and the sellers decided that a timed online auction would be the best choice for the sellers.

The results surpassed the expectations of the seller. The six-hour auction attracted 48 bidders from six different states, and the competition resulted in prices well above the averages for the county. The largest tract – 466 acres – brought a rent of $264 per acre. Land in the county has been renting at a range of $135 to $180 per acre.

“Prevailing cash rent prices can fluctuate with crop prices, interest rates and other factors, so it’s critical to establish agreements at a fair market rate. Nothing beats an auction for establishing that. Based on the results we saw in Missouri, this is definitely something we will continue to pursue and innovate. I believe it will be of interest to other landowners,” said Meyer.

Cox - Harrison County Land Rent Auction Results