Unlocking the Value of Minnesota Farmland: A Comprehensive Guide to Current Land Prices and Expert Insights - November 2023 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 November, a total of 5,615.8 acres were sold in Minnesota by auction method. The current average per acre price for land in Minnesota according to these November sales is $9,396/acre. The highest selling farm in Minnesota in the month of November 2023 sold on November 1st in Polk County for $10,100 per acre for 383.9 acres, with a CPI of 89.8. The farm with the highest selling price per acre sold on November 9th in Rock County for $18,500 per acre for 160 acres, with a CPI of 95.1.
| County | Total Acres | $/Acre | CPI Soil Score | Total Price | Date Sold |
|---|---|---|---|---|---|
| Polk | 383.9 | $10,100 | 89.8 | $3,877,188 | 11/1/23 |
| Blue Earth | 94 | $13,000 | 93.7 | $1,222,000 | 11/2/23 |
| Blue Earth | 80 | $10,400 | 86.4 | $832,000 | 11/2/23 |
| Blue Earth | 30 | $10,200 | 86.7 | $306,000 | 11/2/23 |
| Blue Earth | 75.9 | $11,200 | 86.2 | $849,968 | 11/6/23 |
| Kittson | 153 | $6,363 | 75.2 | $973,539 | 11/7/23 |
| Kittson | 299.2 | $6,011 | 77.6 | $1,798,933 | 11/7/23 |
| Cottonwood | 151 | $5,519 | 71.2 | $833,360 | 11/7/23 |
| Beltrami | 77.2 | $1,200 | 33.8 | $92,616 | 11/7/23 |
| Beltrami | 118 | $1,150 | 46.4 | $135,700 | 11/7/23 |
| Wilkin | 151.8 | $5,400 | 90.6 | $819,612 | 11/8/23 |
| Polk | 160 | $5,000 | 86.9 | $800,000 | 11/8/23 |
| Murray | 80 | $11,250 | 91 | $900,000 | 11/9/23 |
| Murray | 80 | $10,000 | 84 | $800,000 | 11/9/23 |
| Murray | 71 | $8,500 | 82.6 | $603,500 | 11/9/23 |
| Yellow Medicine | 150.6 | $9,250 | 86.3 | $1,393,235 | 11/9/23 |
| Brown | 128 | $11,600 | 94.6 | $1,484,916 | 11/9/23 |
| Nobles | 116.6 | $15,900 | 91.6 | $1,850,601 | 11/9/23 |
| Rock | 160 | $18,500 | 95.1 | $2,960,000 | 11/9/23 |
| Benton | 77.5 | $10,080 | 39.4 | $781,502 | 11/10/23 |
| Benton | 158.2 | $15,330 | 68.5 | $2,424,593 | 11/10/23 |
| Benton | 96.5 | $9,555 | 65.7 | $921,675 | 11/10/23 |
| Lac qui Parle | 154.3 | $6,600 | 73.3 | $1,018,644 | 11/14/23 |
| Martin | 153 | $11,000 | 92 | $1,682,890 | 11/14/23 |
| Faribault | 55 | $8,700 | 85 | $478,500 | 11/14/23 |
| Rock | 80.5 | $13,300 | 87.1 | $1,071,049 | 11/14/23 |
| Rock | 87.2 | $10,500 | 92.8 | $915,705 | 11/14/23 |
| Nobles | 160 | $11,300 | 94.2 | $1,808,000 | 11/15/23 |
| Redwood | 80 | $12,300 | 93.4 | $984,000 | 11/15/23 |
| Nobles | 77.3 | $9,500 | 94.2 | $734,445 | 11/15/23 |
| Norman | 156.9 | $7,600 | 90.3 | $1,192,136 | 11/16/23 |
| Traverse | 80 | $8,200 | 95.7 | $656,000 | 11/16/23 |
| Rock | 60 | $15,700 | 87.2 | $942,000 | 11/20/23 |
| Beltrami | 241.8 | $1,620 | 80.7 | $391,635 | 11/21/23 |
| Beltrami | 598.4 | $1,620 | 71.3 | $969,408 | 11/21/23 |
| Beltrami | 19.9 | $1,600 | 71.9 | $31,904 | 11/21/23 |
| Nobles | 80 | $11,700 | 87.3 | $936,000 | 11/28/23 |
| Jackson | 75.6 | $13,400 | 91 | $1,012,906 | 11/28/23 |
| Watonwan | 80 | $13,100 | 91.8 | $1,048,000 | 11/29/23 |
| Watonwan | 51.4 | $10,000 | 95.6 | $513,800 | 11/29/23 |
| Watonwan | 38.4 | $9,700 | 94.8 | $372,480 | 11/29/23 |
| Becker | 76 | $8,130 | 89.2 | $617,880 | 11/29/23 |
| Becker | 80 | $9,210 | 83.9 | $736,800 | 11/29/23 |
| Becker | 80 | $9,510 | 68.6 | $760,800 | 11/29/23 |
| Nobles | 157.7 | $13,000 | 94.5 | $2,049,450 | 11/29/23 |
| Statewide Averages | 124.80 | $9,396 | 82.87 | $1,057,453 | |
| Statewide Totals | 5615.8 | $47,585,370 |
Call us about selling your Minnesota land at 402-739-8696 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 the USDA-National Agricultural Statistics Services (USDA-NASS) survey, in 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 in 2023.
The USDA-National Agricultural Statistics Service (NASS) also provided county-level cash rent estimates for the 2023 growing season in Minnesota. These estimates encompass non-irrigated as well as pasture, on a per-acre basis. Variances in non-irrigated cropland rental rates are attributed to factors like soil type, rainfall, yield expectations, and market competitiveness among counties. Notably, some counties lacked sufficient survey returns, indicating either low rates or a scarcity of data in specific regions. View the survey and additional information here.
The NASS has documented that the average cash rent in 2023 for non-irrigated cropland Minnesota stands at $198 per acre, reflecting an increase of $13 per acre compared to the 2022 rate. Sibley County recorded the highest published cash rent for non-irrigated cropland at $285.00 per acre, with Martin County following closely at $280.00 per acre. The top five also included Dodge, Faribault, and Blue Earth. On the other end of the spectrum, St. Louis County reported the lowest average cash rent for non-irrigated cropland at $14.00 per acre. See (Figure 2) below for your county’s non-irrigated cash rent estimates according to the NASS.
Another survey by the NASS estimated the average rent for irrigated cropland at $215.00 per acre, reflecting a $15.00 increase from the rates in 2022. Additionally, cash rental rates for pasture averaged $30.00 per acre, marking a $3.00 rise compared to the preceding year. You can view the survey and previous years’ estimates here.
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.
As we look ahead to 2024, our forecast indicates that land prices in Minnesota will maintain stability, strengthening the allure for potential sellers to act in the current market. The ongoing demand for high-quality farmland is expected to endure, providing favorable conditions for those contemplating a sale. Seizing this opportunity during a period of projected stability allows sellers to make strategic decisions that align with the evolving dynamics of the agricultural real estate market, ensuring the maximization of returns on their valuable assets. In short, don’t miss the chance to capitalize on the market while it’s at its peak.
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 402-739-8696.
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:
Although we have experienced steady annual growth, we are starting to see farmland prices plateau. Similarly, the USDA-NASS reported a net farm income decrease, which leads us to predict cash rent values to follow suit. While the stability of land prices persists into 2024, we might start to see a decline in the latter half of the year. Higher interest rates, lower crop prices, high input costs, and trade barriers are challenging the farming economy and land prices in the coming months. Don’t miss out on your opportunity to catch the market at its peak. We know where the market is today, and now is still a good time to sell farmland.
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
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