Are Minnesota Farmland Sales Slowing Down? Year-End Will Tell
Farmland sales have been relatively quiet across southeastern Minnesota in 2026. But with some of the busiest months for land transactions still ahead in the fourth quarter, the year-end numbers could tell a different story.
Despite the slower sales activity, land values have remained resilient amid tighter margins and other pressures on the agricultural economy.
Fewer Farmland Sales Across Southeastern Minnesota in 2026
Compeer Financial's appraisal team tracks farmland sales across Minnesota, Wisconsin and Illinois on a monthly cadence, providing insight into local land markets.
In six southeastern Minnesota counties — Dakota, Le Sueur, Rice, Goodhue, Wabasha and Dodge — 101 farmland sales qualified for inclusion in the appraisal team's market analysis in 2025. So far in 2026, that number stands at just 55.
This region has a diverse agricultural landscape, with row crops, dairy operations, beef cattle, swine and poultry production. It also includes land influenced by Twin Cities suburban development and growing demand for recreational properties.
The smaller number of farmland sales makes identifying trends more difficult, particularly in counties where only a handful of properties have changed hands.
Minnesota Farmland Values Remain Resilient
Despite fewer sales, farmland values across the six-county region have increased approximately 5% from 2025 levels, based on the transactions analyzed so far. Looking back four years, the combined increase is approximately 21%.
Those gains haven't been consistent from year to year, and there's considerable variation between counties.
Le Sueur County's weighted average value is approaching $13,500 per tillable acre, while strong sales in Dodge County have pushed the average closer to $14,500. Elsewhere in the territory, values are generally closer to $11,000 to $11,500 per tillable acre.
These figures offer a useful snapshot, but it's important to keep the limited number of 2026 transactions in perspective. A few strong sales can have a greater influence on the averages when there are fewer properties to compare.
Local conditions are also relevant. Soil quality, location, property characteristics and demand from neighboring landowners can all influence what a particular parcel brings on the market.
Harvest Results Add Another Factor to the Farmland Market
Commodity prices and crop yields are also part of the picture as farmers evaluate their financial position heading into 2027.
Corn and soybean futures rallied over the summer before weakening again as harvest began. But better-than-expected yields in parts of southeastern Minnesota could help offset some of the pressure from lower prices.
Once harvest is complete, farmers will have a clearer view of their financial position as they consider decisions around buying, selling or holding land in the coming year.
Other Land Uses Are Influencing Farmland Values
Agricultural production isn't the only factor influencing land values in southeastern Minnesota.
In Dakota County, suburban expansion is creating demand for agricultural land with residential development potential. Solar energy projects are another factor. Some landowners are securing attractive lease payments for solar installations, including on productive agricultural acres.
Recreational land has also become increasingly valuable, particularly in the wooded hills and river valleys of southeastern Minnesota. Properties that once contributed relatively little to the overall value of a farm may now command $5,000 to $7,000 per acre, with some properties selling for more.
These markets create additional considerations for landowners evaluating the potential value and uses of their property.
Will Year-End Farmland Sales Close the Gap?
Farmland sales tend to follow a seasonal pattern. A substantial share of transactions typically occurs between November and February, with December often among the most active months.
There are practical reasons behind that timing.
Once harvest is complete, farmers have a better understanding of their production, cash flow and financial outlook. That information can influence decisions about purchasing additional acres, selling property or negotiating rental agreements.
Year-end tax considerations can also play a role in land decisions.
Given that pattern, the gap between 2025 and 2026 farmland sales could narrow considerably over the coming months.
Whether activity will be strong enough to bring the full-year numbers in line with 2025 remains to be seen. The additional transactions should also provide a larger pool of data to determine whether farmland values are continuing to rise, leveling off or beginning to shift.
What Lies Ahead for Farmland Values in 2027?
The next several months should provide a clearer picture of where the farmland market is headed.
For now, land values in southeastern Minnesota continue to show strength, even as the pace of sales has slowed. The question is whether the coming months will bring enough activity to close the gap and provide a more complete view of 2026.
Whether you’re preparing to buy or sell, partner with an appraiser who is based in your region and understands local markets. Connect with Compeer’s appraisal team to discuss your situation.
