Strong bidding for lands in state agricultural sale near Nenana, Interior Alaska

Alaska’s first agricultural land sale in years was proved very competitive with most tracts offered in the Nenana-Totchaket Agricultural Project receiving multiple bids and bidders showing more interest in larger than smaller parcels, the state Department of Natural Resources said Wednesday, Oct. 18.

Approximately 2,000 acres were sold in a sealed-bid auction. It is the first increment of what state officials hope will be several land sales in a 140,000-acre area of state lands west of Nenana, on the Parks Highway southwest of Fairbanks. The area has been desigated for agriculture in state land plans because of its high potential for farming.

This first sale offering of the Nenana-Totchaket Agricultural Project, called Phase 1A, featured 27 parcels ranging in size from 20 to 320 acres each. “Results from the initial auction are promising: Eighty nine percent of the offered parcels received bids, with 15 total apparent high bidders coming from both within Alaska and out of state,” the state said in its announcement.

Gov. Mike Dunleavy said the project will help Alaska become more self-sufficient. “One of my highest priorities for Alaskans is food security and independence, so we no longer have to import 95 percent of the food we eat,” the governor said. “This project will continue to grow for generations and become a vital key to our agricultural industry and the State’s economy.”

“The strong local and national interest with this auction confirms the conversations occurring for decades about the potential for farming in the Nenana region,,” said acting Division of Agriculture Director Mia Kirk.

The successful auction coincides with planning by the state Department of Transportation and Public Facilities to extend a 10-mile road build into the project area that will open up other lands for farming or other uses. The plan is for the road to eventually reach the Kantishna River. Development of the area became possible after a bridge was constructed over the Nenana River.

The road itself was built earlier by Doyon Ltd., the Fairbanks Alaska Native regional corporation, to aid Doyon’s oil exploration in the area. The oil exploration proved unsuccessful and Doyon conveyed rights to the road to the city of Nenana.

“The progress made today would not have been possible without the essential access that the Totchaket Road and new Nenana Bridge provided to farmers,” said state resources Deputy Commissioner Brent Goodrum.

Highlights from the auction:

• 24 of the 27 parcels received bids

• 18 parcels received multiple bids

• 26 percent of the parcels received more than 10 bids

• Market interest focused on the larger parcels

Full results from the auction can be found at: https://dnr.alaska.gov/mlw/landsales/live-auction/494. The remaining parcels will be available through the State’s over-the-counter land sales program beginning at 10 a.m. on Nov. 2, 2022.

Apparent high bidders and over-the-counter purchasers are required to complete a State Farm Conservation Plan that will be reviewed by the local Soil and Water Conservation District and approved by the Division of Agriculture before entering a contract with the State to use the land.