Unlocking the Value of Minnesota Farmland: A Comprehensive Guide to Current Land Prices and Expert Insights - March 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 Values March 2024
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 March, a total of 2,661 acres were sold in Minnesota by auction method.

• The current average per acre price for land in Minnesota according to these March sales is $11,336 /acre.

• The highest selling farm in Minnesota in the month of March 2024 sold on March 22nd in Norman County for $2,649,108, or $9,400 per acre for 281.82 acres, with a CPI of 86.2.

• The farm with the highest selling price per acre for the month sold on March 12th for $13,900 per acre for 80 acres, with a CPI of 92.3 in Cottonwood County, MN.

County Total Acres $/Acre Tillable Acres $/Tillable Acre CPO Soil Score Total Price Date Sold
Clay 80 $8,100 79.45 $8,156 89.4 $648,000 3/28/24
Clay 164.16 $7,600 161.89 $7,707 86.6 $1,247,616 3/28/24
Norman 281.82 $9,400 273.91 $9,671 86.2 $2,649,108 3/22/24
Norman 160.09 $9,700 152.65 $10,173 92.4 $1,552,873 3/22/24
Norman 74.03 $9,400 72.05 $9,658 89 $695,882 3/22/24
Norman 160 $11,200 158.87 $11,280 91.1 $1,792,000 3/22/24
Norman 200 $9,600 197.15 $9,739 89.6 $1,920,000 3/22/24
Norman 60 $9,400 57.95 $9,733 89.4 $564,000 3/22/24
Norman 80 $11,200 74.92 $11,959 90 $896,000 3/22/24
Norman 160 $11,200 156.53 $11,448 86.7 $1,792,000 3/22/24
Norman 200 $9,400 184.66 $10,181 88.3 $1,880,000 3/22/24
Norman 5.96 $59,564 - - 89 $355,000 3/22/24
Norman 160 $8,550 153.88 $8,890 92.6 $1,368,000 3/22/24
Norman 160 $11,100 150.97 $11,764 89.1 $1,776,000 3/22/24
McLeod 100 $8,085 82.04 $9,855 83.2 $808,500 3/13/24
Cottonwood 80 $13,900 77.75 $14,302 92.3 $1,112,000 3/12/24
Martin 40.01 $10,150 38.51 $10,545 88.2 $406,102 3/7/24
Martin 143.78 $8,300 134.28 $8,887 90.9 $1,193,374 3/7/24
Mower 149.38 $8,750 - - 68.2 $1,303,750 3/5/24
Kittson 78.7 $2,160 77.86 $2,192 61.8 $170,640 3/5/24
Kittson 106.2 $2,360 100.8 $2,482 54.9 $250,160 3/5/24
Benton 16.87 $10,270 - - 73.6 $173,250 3/5/24
STATEWIDE AVERAGES 120.95 $11,336 125.59 $9,401 84.66 $1,116,103
STATEWIDE TOTALS 2661 2386.12 $24,554,255

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.

Farmland values in the upper Midwest soared in 2023, reaching unprecedented highs in numerous regions. Strong net farm incomes in 2021 and 2022 provided farmers with additional capital to invest in land purchases. This, combined with limited land availability, sustained the upward trend in land values. Despite some areas facing dry conditions and average to slightly below-average crop yields, others benefited from timely rainfall, resulting in above-average yields. Although crop prices started strong but declined later in the year, and real estate interest rates were significantly higher, these factors did not significantly affect land values for the year, allowing us to remain optimistic for 2024.

Is Now a Good Time To Sell Farmland in Minnesota?

Despite earlier projections, the farmland market in 2023 defied expectations, showing resilience instead of the anticipated plateau or decrease. Looking ahead to 2024, our foresight indicates that land values in Minnesota will maintain their firm footing, presenting a compelling proposition for potential sellers to engage with the current market. The ongoing demand for premium farmland is set to persist, providing advantageous conditions for those contemplating a sale. Seizing this window of stability empowers sellers to navigate the evolving landscape of the agricultural property market, ensuring optimal returns from their valuable assets. Now is the time to capitalize on the thriving market and explore potential opportunities.

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:

While the phrase “what comes up, must go down” is being tossed around, we’re not anticipating a significant downturn anytime soon. It’s worth noting that this is an election year, typically a positive indicator for land markets. In the past 10 presidential election cycles, farmland values have only dropped twice. This trend isn’t surprising, given the usual efforts to stimulate the economy leading up to elections to sway voters. However, the post-November outlook for the land market remains uncertain.

Sales volumes have started to decrease, allowing prices to continue their upward trajectory due to sustained demand for quality farmland. Despite challenges such as higher interest rates, lower crop prices, increased input costs, and trade barriers, the agricultural economy and land values face, robust sales persist. It’s imperative to capitalize on the current peak market conditions. Recognizing the prevailing market dynamics, selling farmland remains advantageous at this time. 

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

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.