Unlocking the Value of Minnesota Farmland: A Comprehensive Guide to Current Land Prices and Expert Insights - April 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.

Minnesota farmland prices 2024 report with sales data
Jason Smith, Broker | Auctioneer

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 April, a total of 1,126  acres were sold in Minnesota by the auction method.

• The current average per acre price for land in Minnesota according to these April sales is $10,839/acre.

• The highest selling farm in Minnesota in the month of April 2024 sold on April 10th in Polk County for $1,408,566 or $8,850 per acre for 149.63 acres, with a CPI of 91.5.

• The farm with the highest selling price per acre for the month sold on April 30th for $35,245 per acre for 10 acres, with a CPI of 51.1 in Stearns County, MN.

County Total Acres $/Acre Soil Score Total Price Date Sold Tillable Acres $/Tillable Acre
Stearns 14.03 $35245.90 51.1 CPI $494500.00 04/30/2024 10.00 $49450.00
Meeker 40.00 $12105.00 88.9 CPI $484200.00 04/23/2024 38.99 $12418.57
Rice 40.00 $9300.00 80 CPI $372000.00 04/17/2024 31.20 $11923.08
Dakota 58.29 $12700.00 69.3 CPI $740283.00 04/17/2024 54.00 $13708.94
Mahnomen 80.00 $4010.00 79.2 CPI $320800.00 04/16/2024 68.92 $4654.67
Pipestone 80.00 $10600.00 93.7 CPI $848000.00 04/11/2024 75.53 $11227.33
Le Sueur 31.09 $5000.00 79.8 CPI $155450.00 04/10/2024 17.34 $8964.82
Polk 159.16 $8850.00 91.5 CPI $1408566.00 04/10/2024 149.63 $9413.66
Goodhue 87.82 $9400.00 68.9 CPI $825508.00 04/10/2024 87.00 $9488.60
Nobles 61.00 $11600.00 92.9 CPI $707600.00 04/09/2024 57.79 $12244.33
Renville 45.00 $11025.00 80 CPI $496125.00 04/04/2024 41.56 $11937.56
Clay 157.34 $8500.00 90.6 CPI $1337390.00 04/02/2024 146.85 $9107.18
Cottonwood 111.00 $4822.17 79.3 CPI $535260.60 04/02/2024 94.48 $5665.33
Rock 80.00 $17200.00 95.7 CPI $1376000.00 04/01/2024 79.00 $17417.72
Stevens 81.89 $13250.00 92.5 CPI $1085042.50 04/01/2024 80.65 $13453.72
1126.62 $10839.34 $11186725.10 Average Dollars Per Acre $13405.03

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.

Minnesota Farm income projection for 2024:

Why Now is a Good Time to Sell Farmland in Minnesota

As we step into 2024, Minnesota’s agricultural landscape is facing a significant economic shift. According to the latest projections by Rural and Farm Finance, the state’s net farm income is expected to decline substantially. This decline presents a unique opportunity for farmland owners contemplating selling their farm. Let’s explore why now might be the optimal time to make this move.

Projected Decline in Net Farm Income

Minnesota’s net farm income is anticipated to decrease by $1.7 billion from 2023 to 2024. This 21% decline is driven by several factors:

  1. Reduced Crop and Livestock Receipts: Crop and livestock receipts are projected to drop by a combined $2.7 billion in 2024. This significant reduction is a clear indicator of the financial pressures facing the agricultural sector.
  2. Decreased Production Expenses: While production expenses are expected to decrease by $1.2 billion, this reduction is not enough to offset the overall decline in income.
  3. Lower Federal Crop Insurance Indemnities: Total federal crop insurance indemnities are estimated to fall by $0.5 billion, further contributing to the drop in net farm income.

These factors collectively paint a challenging picture for farmers in 2024.

Why Sell Now?

  1. Maximize Property Value Before Further Declines: With net farm income projected to decline significantly in 2024, the market value of farmland may follow suit. By selling now, farmland owners can secure a price based on current values, avoiding potential depreciation in the near future.
  2. Increased Buyer Interest: Despite the projected decline, there may still be strong interest from buyers looking to invest in farmland. This interest could stem from the long-term potential of agricultural investments or diversification strategies by larger agricultural corporations.
  3. Avoid Potential Financial Strain: For many farmers, the projected decrease in income could lead to financial strain. Selling now can provide liquidity and financial stability, allowing owners to reinvest or diversify their assets without bearing the brunt of the anticipated economic downturn.

Looking Ahead: Future Projections

Interestingly, while 2024 poses challenges, the outlook for Minnesota’s net farm income in the longer term is more optimistic. Projections suggest that net farm income will increase in 2025 and 2026 as production expenses continue to decline. Over the 10-year baseline, net farm income is expected to average $6.5 billion. This positive trajectory indicates that the agricultural sector may recover and stabilize, making farmland potentially more valuable in the long run.

However, for those considering selling, the immediate financial landscape provides compelling reasons to act now. The combination of declining income, potential depreciation in farmland value, and the opportunity to capitalize on current buyer interest makes 2024 a strategic time to sell.

In summary, the projected decline in Minnesota’s net farm income in 2024 creates a unique window of opportunity for farmland owners. Selling now allows owners to maximize their property’s value, avoid future financial strain, and leverage current market conditions. As the agricultural sector navigates these economic shifts, strategic decisions like selling farmland can provide financial stability and pave the way for future opportunities.

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.

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.