A Mid North farming block in South Australia has sold for $13,500 per acre without even being listed for sale.
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At that stunning price, the Saddleworth farm made around $2.3 million for a surprised owner.
The land which agents said "didn't get to market" took in 70 hectares (172 acres).
Elders auctioneer and selling agent Adam Chilcott said the sale proved the importance for buyers to stay in contact with agents, tell them of requirements and areas where they want to buy.
Mr Chilcott said agents best know what land is coming up for sale
He said allowing the market to determine the price for farm land is generally best achieved through "public on-market campaigns" where wide marketing exposure can encourage maximum buyer participation.
"However, in certain circumstances vendors or agent may occasionally request or suggest an 'off-market' approach and if that process is thorough and targeted, it can establish an outcome where both parties are satisfied."
Such was the case with the Saddleworth farm sale, located in a reliable rainfall area about 110km north of Adelaide.
Mr Chilcott said a year ago, a farm owner was scaling back their operations at Saddleworth and accepted an overall offer of $11,252/ac prior to auction for a gently sloping, highly productive (80ha, 198 acre) parcel.
A more than handy windfall of $2.23 million.
"At the time, that was a significant result for the area and it surpassed expectations," Mr Chilcott said.
"Previous results had ranged between $6500-$8500/acre in the preceding years."
Fast forward to today, a year later, the same vendor decided it was time to continue scaling back their farm operations.
The instruction to the agent was initially to gauge if there was interest for the 70ha (172 acre) parcel on an 'off market' basis.
This block was adjacent to the block sold with such success a year earlier.
After running the previous year's campaign, the agent made approaches to local farming groups and families who had expressed interest in other broadacre dryland farms for sale in and around the district.
"There was immediate interest in the block and a deal was achieved promptly," Mr Chilcott said.
It settled recently for $33,362/ha or $13,500/ac, overall.
More than $4.5 million for two blocks totalling 370 acres for the downsizing farmer in a year.
Chris McLennan
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
