Unlocking the Value of Minnesota Farmland: A Comprehensive Guide to Current Land Prices and Expert Insights - September 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 September, a total of 918.92 acres were sold in Minnesota by the auction or private listing method. These results are from 80% or more tillable farm sales.
• The current average per acre price for land in Minnesota according to these September sales is $8,546/acre.
• The highest selling farm in Minnesota in the month of September 2024 sold on September 6th in Blue Earth County for $1,840,000 or $11,500 per acre for 160 acres, with a CPI of 83.7.
• The highest selling price per acre farm went to 52.19 acres in Nobels County that sold for $14,600/acre on September 20th. This farm is 97% tillable and has a 87.3 CPI which calculates to be $167/CPI.
| County | Date Sold | Total Acres | $/Acre | Tillable Acres | % Tillable | Soil Score | Soil Score Index | $/CPI | Primary Crop (2023) | Total Price |
|---|---|---|---|---|---|---|---|---|---|---|
| Traverse | 09/25/2024 | 160.00 | $8500.00 | 149.30 | 93.31 | 90.6 | CPI | $93.82 | Corn | $1,360,000 |
| Nobles | 09/20/2024 | 52.19 | $14600.00 | 50.92 | 97.57 | 87.3 | CPI | $167.24 | Soybeans | $761,974 |
| Cottonwood | 09/12/2024 | 40.00 | $13200.00 | 38.16 | 95.4 | 97.0 | CPI | $136.08 | Soybeans | $528,000 |
| Blue Earth | 09/06/2024 | 155.90 | $11500.00 | 145.77 | 93.50 | 82.3 | CPI | $139.73 | Corn | $1,792,850 |
| Blue Earth | 09/06/2024 | 40.00 | $11000.00 | 40.00 | 100.00 | 78.1 | CPI | $140.85 | Corn | $440,000 |
| Blue Earth | 09/06/2024 | 160.00 | $11500.00 | 154.56 | 96.60 | 83.7 | CPI | $137.40 | Soybeans | $1,840,000 |
| Blue Earth | 09/06/2024 | 150.83 | $11200.00 | 150.19 | 99.58 | 83.8 | CPI | $133.65 | Soybeans | $1,689,296 |
| Blue Earth | 09/06/2024 | 80.00 | $11500.00 | 72.56 | 90.70 | 77.1 | CPI | $149.16 | Corn | $920,000 |
| Blue Earth | 09/06/2024 | 80.00 | $11000.00 | 65.49 | 81.86 | 79.6 | CPI | $138.19 | Soybeans | $880,000 |
| Averages/Totals | 918.92 | $8,546.41 | 866.95 | 94.28 | 84.4 | $137.35 | $10,212,120 |
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.
Will the Election Affect Farmland Prices and Sales in Minnesota?
Elections can influence farmland prices and sales by bringing changes to policies that affect agriculture directly. For example, shifts in tax laws—like capital gains, estate, or property taxes—can impact the profitability of selling or buying farmland. Higher capital gains taxes might make some owners hesitant to sell, while favorable tax changes could encourage sales.
Interest rates can also shift with new leadership, affecting the cost of financing land purchases, which in turn influences what buyers can afford. Additionally, policies on subsidies, conservation programs, and environmental regulations often get re-evaluated with a new administration, potentially impacting farm income and operational expenses. Trade policies play a role as well, since changes in commodity prices and export opportunities affect farmland value. For these reasons, both buyers and sellers may watch election outcomes closely to help them decide on the best timing for their farmland sales and purchases.
Monthly Rural Mainstreet Index Survey Results at a Glance:
These results come from Creighton University’s Mainstreet Economy Historical Data By State Survey
September’s RMI for the state of Minnesota decreased very slightly to 48.1 Minnesota’s farmland price index for September also decreased to 42.2. Minnesota’s new hiring index for September also decreased to 43.2.
Minnesota Cropland Average Cash Rent Prices
According to the USDA’s latest report, non-irrigated cropland cash rent in Minnesota averaged $200 per acre in 2024, a $2 increase over 2023. Martin County led with the highest cropland cash rent at $287 per acre, followed closely by Dodge County at $284. Other high-ranking counties included Sibley, Renville, and Watonwan. In contrast, St. Louis County had the lowest cropland cash rent at just $13 per acre. For pasture land, the statewide average cash rent rose to $32 per acre, also a $2 increase. Pipestone County topped the list for pasture rent at $63 per acre, while St. Louis County remained the most affordable at $7.90 per acre. These figures reflect the diverse agricultural rental market across Minnesota’s counties.
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.