Mack Auction Company held another successful land sale in early December.
Six quarter sections of land in the RM of Benson went for a great deal of money on Dec. 4. The total for the online timed auction was $1.75 million.
"The auction was strong," said Norm Mack with Mack Auction. "Demand for good farmland in Saskatchewan is good and it's increasing in value."
Mack pointed out that for a long time farmland in Saskatchewan was undervalued in comparison to other Prairie provinces, and it's finally starting to get where it's supposed to be.
"Our neighbouring provinces, Alberta and Manitoba, have seen higher land prices and people are starting to realize that, and that's why we see the increase of land. Also, in farming there have been some pretty good years. Farming seems to be aligned and strong in Saskatchewan and Western Canada, and therefore land is increasing in value," Mack said.
"Another reason that we can see land values are increasing is that current interest rates are very low. Some people with cash might feel that owning land is a better investment than having money in the bank. Or if they were to finance, it's pretty good finance rates now."
Two quarters sold by David Schell went as one package. The other four were the estate of Anne Schwab. The land was sold by timed online bidding, and the auction lasted five days.
"Some of the quarters broke the $300,000 mark and sold for $321,000, $307,000 and $304,000, something like that," Mack said. "We are seeing farmland creep up to that $300,000 a quarter."
Mack Auctions have been holding online timed land and equipment sales almost since the beginning of the pandemic. And while in the first months there might have been some doubts, the following days have proved that the online format was a way to go.
"All our auctions for farm equipment and farmland are timed online, so there are no gatherings at all. And it's proven to be very good. This is probably one of our strongest years in 15 years," Mack said.
The online format allows for more people from other areas to participate in sales. Besides, the prices in the agricultural sector, whether it's equipment or farmland, have been strong all year.
Mack Auction Company was already set up for online sales even before the pandemic, so when COVID-19 hit Saskatchewan, it was an easy transition for them.
"Our software works good and people seem to like it, they don't have to travel. And we are seeing more bidders and stronger prices."
The Benson land sale was a very active one with almost 800 bids placed.
The company also just finished a sale up in Arran and is currently working on expanding their reach on farmland and farm equipment.
"We like to think that we are sort of leading the country in the land auctions," Mack said.
April, a month traditionally dedicated to farm equipment sales, was already almost fully booked as early as mid-December. The other auctions were also 小蓝视频 booked well into 2021.
"All auctions will be timed online. That way there is no question, they can go ahead no matter how COVID is. While we are (still fighting with) COVID, they'll be all online," Mack said.
