Minnesota Farmland Demand and Regional Price Variations
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The past two years in Minnesota’s farmland market have been relatively stable, but with limited sales data, every transaction plays a key role in understanding where land values are headed.
If you’re looking to buy or sell farmland, understanding these market shifts is essential. Compeer Financial’s appraisal team can help you make sense of the market by providing expert insights and accurate property valuations. Our team knows the local market and can guide you through the nuances of rural land values.
In Stearns County, high-quality cropland is scarce and highly sought after. The lack of recent arms-length transactions for top-tier tracts has created an extremely pent-up market. When a significant sale occurs, it can significantly influence future values.
A notable recent example is the sale of a 160-acre irrigated cropland tract in western Stearns County. This property sold for just over $1.5 million, or about $9,700 an acre. Given the limited comparable sales, this sale stood out despite management challenges, such as a drainage ditch cutting through the property.
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Recreational Land and Lower-Quality Cropland Sales
While sales of high-quality cropland remain scarce, lower-quality tracts and recreational properties have been more active. Recreational land in eastern Stearns County has been selling at prices equal to or higher than some cropland, especially for dense wooded acreage. These sales reflect strong interest from buyers seeking hunting land or rural retreats.
Cass County has seen a similar trend. Recreational properties near Pine River continue to attract buyers, with seasonal demand driving value fluctuations. Depending on the time of year – especially during hunting season – property values can shift based on buyer interest.
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Why Every Sale Matters
In a market with limited data, each transaction is crucial for assessing the market’s direction. Recent sales in Stearns County highlight this trend:
- A 64-acre cropland tract in St. Joseph Township with a lower productivity index (PI) sold for $7,500 per acre.
- Meanwhile, a 65-acre recreational tract in the same area sold for about $7,370 per acre, reflecting the growing competition in the market for non-agricultural land.
Cass County has shown more consistent activity, particularly with recreational sales. However, values can vary greatly depending on the location. Properties closer to Gull Lake and Brainerd typically fetch higher prices compared to more remote areas in northern Cass County.
What to Watch in 2025
With limited sales in recent years, it’s difficult to predict how 2025 will unfold. Multi-county auctions, like the one held in November 2024 across Sherburne, Benton and Douglas Counties, could signal what’s ahead. That auction, which included 1,200 acres of farmland, set record prices and drew significant interest.
Will similar sales boost land values in Stearns County? Or will we see prices stabilize? Time will tell, but staying informed is critical as the market continues to evolve.
Staying Ahead of Market Changes
In a market where sales data is scarce, every transaction offers important insights. Whether you’re buying, selling, or simply monitoring land values, Compeer Financial’s appraisal team is here to help you stay ahead. We specialize in rural property valuations and understand the unique factors that impact farmland and recreational land prices in Minnesota.
For additional information and the latest updates, visit Compeer Financial’s Appraisal Services page and subscribe to our monthly appraisal newsletter. Our team is ready to help you make informed decisions and maximize the value of your land – no matter what type of rural property you’re working with.