1,625 acres of mostly dry cropland located in south-central Montana has successfully sold at action for a total of $943,500, or $581/acre. This sale reflects a rather "pure" value for dry cropland in the area, as the property has no trees, open water or other recreational amenities making it predominantly an agricultural property. There is a homesite on the property, but the small older home is vacant and uninhabitable in its current condition. As such, the building improvements likely have no contributory value.
The auction took place in Billings, Montana on December 4th, 2023. There were only two bidders for the property, with both potential buyers phoning in to representatives who were in the room.
It was surprising that the nearby Golden Valley Hutterite Colony was not present at the auction, as they were considered to be likely buyers for the property. According to the auctioneer, they expressed a strong interest early on, yet did not show up for the auction. However, the seller stated that physical access to the property was not convenient for the colony, as they would need to cross a small bridge on Buffalo Trail Road, that would not easily accommodate large farm equipment.
The buyer was represented by Logan Todd of Sonny Todd Real Estate, and is a local, adjoining agricultural landowner who owns substantial acreage in the area.
The sale price appears low given the rapidly appreciating sale prices seen across Montana over the past three years. However, market values are stabilizing, and properties without high-value amenities or which are not located in high-production areas of the state appear to be experiencing reduced demand and decreasing values.
FOR MORE INFORMATION CONTACT:
R-K Auction Company www.r-kauction.com
Rick Kniepkamp – (406) 485-2548 or (406) 939-1632 cell
Darrel – 406-366-5742
Leonard – 406-979-5860