By Scout Nelson
Minnesota farmland values continue to show strength even amid recent small declines. According to AgCountry Farm Credit Services, benchmark farmland in Minnesota declined by 4.00% in the past six months and 2.50% over the past year.
However, values remain close to historic highs, showing a long-term increase of 73.40% over five years and 52.10% over ten years.
AgCountry appraises 23 benchmark farms every six months to track value trends. Despite the recent softening, land values have stayed stable due to ongoing demand and limited supply of available land for sale.
Cropland trends show that six Minnesota benchmark farms had an average drop of 2.80% over six months and 1.40% over the past year. Despite this, farmers and ranchers continue to be the main buyers, with many aiming to convert rented land into owned acres.
“One contributing factor is that multi-generational farms continue showing up at auctions, looking to convert rented acres into owned land. That steady, competitive demand is what’s kept the market durable, even in the face of higher interest rates and lower commodity prices.” said Mark Vetter, AgCountry’s executive vice president of business development.
“Families are looking to reduce their exposure to the cash rent market, which can carry increasing risk. In our region, cash rents are still lower than in places like Iowa or Nebraska, but yields aren’t far behind – so there’s a clear incentive to lock in ownership now. Many farms are trying to get ahead of future rent increases by securing land while they can.”
Vetter emphasized that Minnesota producers are trying to reduce risks tied to rising rental costs by securing land ownership. While cash rents in Minnesota remain lower than other states like Iowa or Nebraska, yields are similar, making ownership an attractive option.
These trends point to strong strategic planning in agriculture despite challenges like lower commodity prices and rising interest rates. Minnesota farmland, while slightly lower in recent months, remains a reliable long-term investment.
To explore full details, visit AgCountry’s report.
Photo Credit: gettyimages-patrick-jennings
Categories: Minnesota, Business