Unlocking the Value of Minnesota Farmland: A Comprehensive Guide to Current Land Prices and Expert Insights - January 2024 Report
Welcome to Our Monthly Minnesota Farmland Value Report
In this monthly report, Jason Smith, Land Broker and Auctioneer dives into Minnesota farmland values, helping you understand the factors that determine what your farm is potentially worth. Our goal as auctioneers and farmland real estate agents is to provide you with up-to-date information, recent sales data, expert insights, and tips for maximizing the potential value of your farmland sale. Let us answer the questions you have about selling farmland in Minnesota. Contact us today for a free consultation.
Jason Smith, Broker | Auctioneer
Founder, Farmland Auctioneer & Land Broker
Jason is an experienced farmland broker and auctioneer with extensive experience in farmland sales across this Midwest. Jason has worked with hundreds of clients to create advantageous outcomes. If you are selling land schedule a consultation with Jason by calling or using the calendar.
Email: [email protected] | Phone: 515-537-6633
Understanding Minnesota Farmland Values:
Factors Influencing Farmland Values in Minnesota
Minnesota’s agricultural landscape is influenced by a multitude of factors. In this blog, we will explore how commodity prices, interest rates, government policies, and regional conditions impact the current market values.
Recent Farmland Sales Data
Let’s dive into the latest sales data, including county location, land size by acre amount, soil productivity ratings, and sale prices per acre and total price in the table below. By analyzing this data, you can get a clearer picture of how your property may be valued in the current market.
Average Price of Farmland in Minnesota
• In the month of January, a total of 1,361.3 acres were sold in Minnesota by auction method.
• The current average per acre price for land in Minnesota according to these January sales is $10,186/acre.
• The highest selling farm in Minnesota in the month of January 2024 sold on January 26th in Watonwan County for $11,300 per acre for 152 acres, with a CPI of 91.
• The farm with the highest selling price per acre sold on January 10th in Meeker County for $25,025 per acre for 3 acres, with a CPI of 61.7.
| County | Total Acres | $/Acre | Tillable Acres | $/Tillable Acre | CPI Soil Score | Total Price | Date Sold |
|---|---|---|---|---|---|---|---|
| Blue Earth | 130.4 | $9,250 | 98.5 | $12,245 | 72.3 | $1,206,108 | 1/30/24 |
| Marshall | 170.9 | $2,486 | 148.7 | $2,858 | 76.8 | $425,000 | 1/26/24 |
| Marshall | 80 | $3,188 | 78.8 | $3,236 | 82.6 | $255,000 | 1/26/24 |
| Watonwan | 80 | $11,400 | 77.8 | $11,722 | 91.3 | $912,000 | 1/26/24 |
| Watonwan | 152 | $11,300 | 145.7 | $11,787 | 91 | $1,717,374 | 1/26/24 |
| Rock | 128.3 | $12,900 | 127.4 | $12,992 | 89.4 | $1,655,199 | 1/26/24 |
| Freeborn | 143.1 | $5,500 | 137.1 | $5,743 | 67.5 | $787,050 | 1/18/24 |
| Nobles | 80 | $10,500 | 75.6 | $11,105 | 92.1 | $840,000 | 1/12/24 |
| McLeod | 36.2 | $11,340 | 32.2 | $12,747 | 93 | $410,962 | 1/11/24 |
| Meeker | 15.4 | $5,758 | - | - | 50.4 | $88,725 | 1/10/24 |
| Meeker | 3 | $25,025 | - | - | 61.7 | $75,075 | 1/10/24 |
| Norman | 80 | $8,800 | 75 | $9,388 | 92.7 | $704,000 | 1/10/24 |
| Freeborn | 39.5 | $10,550 | 38.1 | $10,940 | 93.7 | $417,042 | 1/9/24 |
| Nicollet | 142.9 | $11,500 | 138.8 | $11,841 | 94.6 | $1,643,695 | 1/5/24 |
| Nicollet | 79.6 | $13,300 | 74.8 | $14,142 | 91.7 | $1,058,414 | 1/5/24 |
| STATEWIDE TOTALS | 90.75 | $10,186 | 96.04 | $10,057 | 82.72 | $813,043 | |
| 1361.3 | 1344.54 | $12,195,644 |
Call us about selling your Minnesota land at (218) 297-5779. We can help you safely transition your land ownership using a private sale, public auction or even a private land auction.
Market Trends and Future Projections:
Minnesota Land Market Trends
Each month we like discuss current trends in Minnesota farmland sales, highlighting patterns, emerging opportunities, and potential challenges.
According to Creighton University Rural Mainstreet Index (RMI) Survey, in January, Minnesota’s RMI showed a slight improvement, reaching 44.1, up from December’s 36.0. However, the state’s farmland price index declined to 61.3 from December’s 63.3. On the other hand, the new hiring index for January saw an increase to 47.1, compared to December’s 46.0.
According to data from the U.S. Bureau of Labor Statistics (BLS), Minnesota’s Rural Mainstreet economy experienced a 1.6% increase in employment over the past 12 months. Similarly, employment in the state’s urban areas also grew by 1.6%.
In the face of falling commodity markets and increasing interest rates, farmland values demonstrate resilience as we enter 2024. The January 2024 report on land values reveals a stable market, propelled by financially robust farmers expanding their land portfolios. Our experts propose that while fluctuations in commodity markets and crop expenses may exert temporary pressures, the sustained demand for a finite amount of acreage is anticipated to maintain the overall stability of the land market.
According to the USDA-National Agricultural Statistics Services (USDA-NASS) survey released in February 2023, Minnesota’s farm real estate value experienced a 7.3% increase, averaging $6,600 per acre—an annual growth of $449.02/acre. Comparatively, the previous annual growth was more than double that, at a 17.4% increase from 2021 to 2022. These statistics highlight the slowing, but steady growth and market dynamics within Minnesota’s agricultural real estate landscape. Stay tuned for this year’s report, expected to be included in our next month’s blog.
Is Now a Good Time To Sell Farmland in Minnesota?
In the predictions made by some analysts last December, there was an expectation that farmland prices might finally plateau or even decrease in 2023. Contrary to these projections, the reality has shown significant resilience in the land market, with consistently strong values being documented.
Moving forward into 2024, our projection suggests that land values in Minnesota will sustain their stability, enhancing the attractiveness for prospective sellers to engage in the present market. The consistent demand for premium farmland is anticipated to persist, offering advantageous circumstances for individuals considering a sale. Taking advantage of this moment during an anticipated period of stability empowers sellers to make informed choices that harmonize with the shifting landscape of the agricultural property market, guaranteeing the optimization of profits from their valuable holdings. In essence, seize the opportunity to leverage the market while it’s thriving.
Future Predictions for Farmland Values
Here you will gain insights into the future of Minnesota’s farmland market with our expert forecasts. Understand what to expect in the coming months and years. Here’s what we are predicting:
Despite experiencing consistent annual growth, we’re noticing a plateau in farmland prices. Correspondingly, the USDA-NASS has reported a decrease in net farm income, leading us to anticipate a similar trend in cash rent values. While the stability of land prices remains intact as we enter 2024, we may begin to observe a downturn in the latter part of the year. Factors such as higher interest rates, reduced crop prices, elevated input costs, and trade barriers pose challenges to the agricultural economy and land prices in the upcoming months. That said, we are still experiencing strong sales in the current market. Seize the opportunity to capitalize on the market while it’s peaking. We understand the current state of the market, and selling farmland remains favorable at this juncture.
Navigating the Selling Process:
Tips for Selling Your Farm in Minnesota
Explore a set of practical tips for successfully selling your farmland by downloading our free eBooks here. Schedule a non obligatory consultation with us today and we will cover everything from when is the best time to sell, a customized marketing plan, sales methods, how we can help you find the right buyer, and answer your questions.
Farm Real Estate Experts in Minnesota
Meet our team of Minnesota farm real estate and auction experts who can provide you with valuable guidance and personalized assistance throughout the selling process. If you’re looking to uncover the true value of your Minnesota farm or are considering selling, don’t hesitate to reach out to our experienced team. We’re here to provide you with a customized plan to meet your goals. Contact us today to get started.
Kevin Cochran, Minnesota Land Agent
Real Estate Agent
Kevin is a Minnesotan through and through, apart from stints in Seattle and New York. His decades-long career in the tech world involved supporting leading semiconductor companies and powering the tech behind cell phones, video games, computers, and other gadgets. Back in Minnesota, Kevin focused on the electrification of farm equipment and drones. On the side, Kevin cultivated his knack for home remodeling, culminating in his Home Inspector’s Certification. More recently, he acquired his FAA Part 107 Remote Pilot license and Minnesota real estate license.
Email: [email protected] | Phone: (218) 850-4946
Assessing Your Farm’s Worth:
Minnesota Land Market Analysis Appraisal Technique
Curious what your farm could sell for? We prepare market analysis for each of our farmland sellers to help you discover and learn what your farm is worth from our market based research and expertise. Fill out our form here to request a market analysis of your Minnesota farmland or call us at 507-769-0128.