MARSHALL — The annual survey has been conducted of farmland sales in 14 southwestern Minnesota counties. The survey collects bare farmland sales to non-related parties for the first six months of each year. After reaching record-high prices in 2013, the upward trend was broken as prices declined in 2014 and continued down through 2017. This year the increase across the 14 counties averaged 14.7 percent after a 27.9 percent increase in 2022.
Jackson County had the highest average sale price of $12,656 per acre and Lac qui Parle County had the lowest at $6,348 per acre. The average Crop Equivalency Rating (CER) for the 14 counties was 67 with the highest price per CER in Redwood County at $103.06 and the lowest in Lincoln County at $68.65 per CER.
Each year sales vary. Within a county, land location could affect these average values yearly. The quality of the land sold within a county may be a factor in the wide swing in the prices from year to year in individual counties. The number of sales in each county varies greatly from year to year. The 14.7 percent increase is above historical increases of 1 to 2 percent. Several factors influence land values. Farm incomes, grain prices, interest rates, return on other investments, and 1031 exchanges are often mentioned as reasons for the increase. Farm average incomes improved in 2019, 2020, and 2021, 2022 and are projected lower in 2023. If you would like a copy of the two-page document on the trends in farmland sale prices, contact your local county Extension office.
The table below indicates average land prices from 2018 to 2023.
