Farm sale season has begun, and a steady stream of auctions and listings are making their way to the marketplace. Several recent reports show Minnesota land values remaining flat or increasing slightly.
The Minneapolis Federal Reserve second quarter survey reports weakened farming finances and a slight increase in land values and rents. Joe Mahon from the Minneapolis Fed also reports that most region lenders anticipate a third-quarter decline in farm income. Long story short, many farmers are tightening their belts while values remain steady. The USDA 2025 Land Values summary also came out in August and reported a 5.3% increase in Minnesota land values from 2024.
Lower farm incomes are expected to close out the year despite a generally good crop year across the region, and many producers are hoping for increased crop yields to help “out-bushel” the price weakness. This current period is not unlike the commodity and land sale market from 2015 to 2019.
This fall, areas where farmers are able to “bushel through” the grain market weakness should see overall stability in the land market, while neighborhoods that struggled on the crop production side of the business may see lagging sales. I expect this year’s fourth-quarter sales will see a 0% to 5% change in the land market, on average, throughout Minnesota.
The two biggest factors that could change the fall land market will be the supply of land coming to the market and government support dollars (or lack thereof) helping to stabilize farmers’ bottom lines. So far, we have seen an increase in acres coming to the market this fall compared to last year, but it’s too early to know if supply will engulf the demand.
Regarding farm assistance, no new funding has been announced yet, but reports indicate that ag leaders in the U.S. Senate are in talks with the USDA and the Trump administration on potential aid by year’s end.
If an announcement reassures farm buyers, we could see a similar land sale environment to this spring, with more confidence fueling strong sales. In the meantime, here are a few recently closed transactions:
Lac qui Parle County. North of Madison, approximately 151.25 acres sold for $10,482 per acre, or $11,087 per tillable acre. The farm consists of 143 tillable acres with a Crop Productivity Index of 95.9.
Martin County. East of Northrop, approximately 22.22 acres sold for $11,216 per acre, or $12,450 per tillable acre. The farm consists of 20 tillable acres with a CPI of 92.4.
Nicollet County. West of North Mankato, approximately 80 acres sold for $15,000 per acre. The farm is 100% tillable with a CPI of 87.
Fillmore County. Southwest of Chatfield, approximately 160 acres sold for $7,156 per acre, or $11,804 per tillable acre. The farm consists of 97 tillable acres with a CPI of 85.6.
Sibley County. West of Henderson, approximately 109.22 acres sold for $8,171 per acre, or $8,898 per tillable acre. The farm consists of 100.3 tillable acres with a CPI of 89.9.
Todd County. South of Staples, approximately 40.6 acres sold for $5,665 per acre, or $9,200 per tillable acre. The farm consists of 25 tillable acres with a CPI of 81.2.
Jackson County. South of Heron Lake, approximately 76.63 acres sold for $9,930 per acre, or $10,146 per tillable acre. The farm consists of 75 tillable acres with a CPI of 85.1.
Kittson County. East of Pembina, N.D., approximately 318 acres sold for $6,289 per acre. The farm is nearly 100% tillable with a CPI of 91.
Hertz Farm Management compiled this list but did not handle all sales. Call Hertz at 507-345-5263 or visit hertz.ag.