TERMS: 10% down day of sale, with the balance to be paid on or before June 14, 2011, or upon such terms as may be acceptable to the Sellers. Personal and corporate checks are acceptable for the down payment with the final payment to be made in certified funds. All funds will be held by the auction company in their trust account or by an identified title/escrow company. Bidding is not contingent upon financing. Financing, if necessary, needs to be arranged and approved prior to the auction. Bids are subject to Sellers confirmation. Announcements made day of sale take precedence over printed material and previously made oral statements.

MINERAL RIGHTS: Mineral rights are believed to be 100% intact. All of the Sellers interest will transfer to the Buyer at closing.

CROPS: There are approximately 123.5 acres of growing wheat (TAM 111) under the East pivot and the Buyer will receive 100% of the 2011 crop.

CROP INSURANCE: There is RP crop insurance in effect on the 2011 growing wheat crop at the 65% level thru Diller Crop Insurance, Texline, TX (806-362-4247). Seller will transfer the crop insurance to the Buyer with Buyer agreeing to pay the premium at closing, and receive any benefits therefrom.

FSA INFORMATION: This farm is not enrolled in current FSA program, however all acreages and plantings have been recorded in a timely fashion during current farm program. Buyer should check with Union County FSA for further information.

CLOSING: Date of closing will be on or before June 14, 2011.

POSSESSION: Possession will be the date of closing with the Buyer having the right to enter for general farming purposes upon full execution of the contract and payment of the earnest money deposit. In the event that Buyer does not close on this contract for any reason, all work done and/or expenses incurred shall be forfeited without compensation and the Buyer shall vacate the premises immediately.

REAL ESTATE TAXES: Sellers will pay taxes for all of 2010 and prior years. Taxes for 2011 will be the responsibility of the Buyer.

EVIDENCE OF TITLE: Sellers will provide title insurance to the Buyer in the amount of the purchase price with the premium to be paid one-half by the Buyer and one-half by the Sellers. Title evidence will be provided on sale day.

ACCEPTANCE OF BIDS: The successful bidder will be required to enter into a New Mexico real estate commission approved real estate purchase contract. Copies of the contract will be available from the auction company prior to the sale.

ACREAGES: Acreage figures are considered to be approximate and are from reliable sources, based on (USDA) FSA figures. All FSA information is subject to change. FSA acres may not be the same as deeded acres.

INSPECTIONS: The potential bidder is responsible for conducting their own independent inspections and due diligence concerning pertinent facts about the property. Neither Sellers nor Farm & Ranch Realty, Inc., or Cruikshank Realty, Inc., their agents or representatives, are making any warranties about the property, either expressed or implied.

EASEMENTS: This sale is subject to all rights-of-way and easements, whether recorded or not, and to any oil and gas leases of record.

AGENCY: Farm & Ranch Realty, Inc., and Cruikshank Realty, Inc., their agents and representatives, are the Exclusive Agents of the Sellers.

IRRIGATION INFORMATION:

One irrigation well 510 in depth. Static water level is 205 from the surface (305 of water).

New electric 60HP submersible pump currently rated at 400 GPM

Original discharge at 620 GPM (tested by driller at 30psi)

Fertilizer tank injectors at each pivot

Test hole 500 in depth drilled 2/6/04, by DBE, Dalhart, TX, indicating potential equal to existing well but not developed to date.

Well was drilled (5-3-2003) prior to permit requirements, and drilling well registration has currently been applied for. Underground waterline to center of circles.

There is 1 domestic well with HP submersible pump 355 in depth, located on the 6.9 acre tract in the SW part of the farm, and connected to cattle watering tubs by underground waterline.

Two Reinke 8-tower sprinklers (less than 5 yrs old)

West system 15,761 hrs and East system 11,116 hrs

Both nozzled at 475 GPM

Antelope fence on all 4 sides of the half section.

If more information concerning the wells is desired call Justin Waggoner at the DBE in Dalhart, TX at 806-249-4585.

AUCTIONEERS NOTE: This excellent irrigated half section lays well and has great potential for further development. It currently possesses one strong irrigation well and additional potential for another strong well has been identified at the depicted test hole. The Cates have been using this irrigated property to enhance their cattle operation. They have developed good cedar wind breaks watered by drip system. All equipment is late model and in excellent condition. Nearby feed lots offer good market potential should the Buyer decide to optimize GRAIN PRODUCTION!