Pioneers knew where to pick the choice farming land

So it was with the McCracken family when they lobbed in the Kaniva district in the 1880s.

Proof of their canny decision came with the auction of that land yesterday with almost $8 million forked out for their choice 785 acres (318ha) of grain-sheep country.

Their neighbours obviously agree this is dirt worth getting hold of, they were the ones who took the gamble.

But if the McCrackens had pinned their hopes on Lillimur, about 10km outside Kaniva, growing as a town they fell short.

Planners of a rail extension were apparently spooked by some fairly low hills in the area and chose a less arduous route through Kaniva instead which grew while Lillimur disappeared.

Lillimur is marked today as the location of a big grain receival site which is pretty handy if you intend to keep growing grain at the McCracken's place, which the new owners obviously will.

Kaniva, population about 800, is closer to Adelaide than to Melbourne and is just a stone's throw from the SA-Vic border.

A pretty and prosperous looking town you have to keep watch on the kids crossing the Western Highway through the town as it takes a huge amount of trucks travelling between the two capital cities.

A new sportsground building has been built at the local footy grounds which is where history was made yesterday.

A big crowd piled into the hub building expecting something big might happen, and it did.

The McCrackens had leased their land, and rented out their former home for $110 a week, but their name is still well regarded in Kaniva after four generations in the district.

Lillimur land does not come up for sale very often.

Good seasons have combined with good grain prices to give farmers the confidence to leverage off record low interest rates to expand their holdings.

While most of the southern grain belt can count on three good seasons in a row, even that was a bit hit and miss but for the Kaniva district it has been mostly of the "hit" variety for six seasons now.

MORE READING: City man buys a country church.

Also, an astute decision was made to sell the McCracken land in two lots.

Westech Real Estate agent Stuart Kyle began the sale with the larger block, containing the homestead and shedding.

A big crowd was in at the hub.

"We've come for a look," one said.

"These big prices are going to impact on us all, rates will go through the roof," said another.

"I will be happy for them if it goes well (which it did)."

It was hard work for Mr Kyle at the start who wanted a $9000 an acre start but kicked it off with a $7000 vendor bid.

Then bidding among two main players reached $8100 before a halt was called for Mr Kyle to consult with vendors.

He returned to the auction to say they were "very close" to the reserve on the home block, and kicked it off again.

This time the price shot up to $9600 in no time, sold to the Williams family.

Lot two, or the "Highway block", quickly shot to $9800 when vendors were consulted and unsurprisingly decided it was on the market.

Even experienced auctioneer Mr Kyle briefly stumbled with the number when bidding hit $10,000 per acre before the Hawker family won the day to the applause of the crowd with the record $11,000.

Mr Kyle explained the two paddocks of the second lot were "two of the best in the shire".

He said the speculation about rising interest rates could also be responsible for people willing to spend big to get some more land before they do.

He does believe a lasting "benchmark" has been set for land prices however.

This year's land selling season has only just begun.

Don't miss out on all the latest rural property news. Sign up here to receive our new and free weekly Farmonline property newsletter.