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.
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
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.