Up or Down? 2017 Farm Land Values
A few years ago, farmland prices were at record highs. The numbers are in for 2017, and there is no clear cut indication as to the direction of the land market.
Kent Thiesse, a farm management analyst, said: "We've seen a lot more variation out there so it's a little harder to pinpoint land values."
The market for agricultural land sales seems to be a bit of a mixed bag.
"I think if we look at just the last 12 to 15 months land values in some areas are more steady and there's isolated areas across southern Minnesota and northern Iowa were land values actually increased." Thiesse said.
Sales data analyzed by the University of Minnesota showed statewide farmland values actually dropped 5.4% in 2017, with a median price of $4,600 per acre.
Wingert Realty in Mankato is actually seeing an active market in Southern Minnesota, with prices for high quality land up 3.5%, making it a seller's market.
Darrell Hylen, a realtor with Wingert Realty, said: "Whether it be expansion farmers or investors, they're looking for high end land. Marginal to lower land hasn't recovered as quickly as the highly sought after, top tillable farms."
It isn't easy to forecast a definite trend, as land value depends heavily on soil quality, drainage and good old supply and demand.