In Yuma, Colo., last week, a family with farmland auctioned some of their property for $3.3 million. The auction is indicative of how high land prices are right now.
"This auction is near an all-time high for almost all the land classes," Jordan Willeke, a loan officer with Premier Farm Credit, said.
The land was originally purchased for roughly $60 per acre, according to the family. It sold last week for roughly $5,000 an acre.
"Very rarely do you see a piece of land come up for sale like this," Nathan Weathers, who showed up to the auction but stopped bidding when prices got too high, said.
The competition was fierce, with bidders calling in bids by phone and tuning into the auction over the Internet, as well.
After hours of auctioning, farmer Larry Baucke came out on top with a bid of $1.8 million.
Those running the auction say land prices in the area have jumped 25 to 40 percent in just the last year.
Experts say high commodity prices, low availability of land and low borrowing rates are all factors.
(KUSA-TV © 2011 Multimedia Holdings Corporation)