Yields, input costs push and pull on preharvest farmland market

A strong preharvest sale season continues to prove the strength of the current farmland market. Top-quality parcels have commanded $12,000 to $15,000-plus per acre this past month at auction. Farms of average quality are still bringing $9,000 to $11,000 per acre for the most part, and the price of lower-tier farms are still largely dependent on the presence of a motivated buyer on the other side of the fenceline.

While the market has shown renewed strength, moving forward with the right sales approach has been key to maintaining values as some farms are still not quite auction quality in this resilient yet selective market.

When looking at land sales on a monthly or quarterly basis, a handful of factors tend to affect the market. As of now, here are the top three:

Commodity prices and yield predictions. Several yield reports were conducted across the Midwest in the past month or so, and each came back with lower-than-expected results. The reduced yield predictions for corn and soybeans in the United States led to a relatively strong market rally that has helped many producers lock in profitable prices on their crop.

Strong Minnesota yield predictions. As of early September, the Minnesota crop is looking better than our Midwest neighbors’ crops. If we can finish out another near-record crop, combined with recent strong prices, Minnesota land values will likely see a 2% to 5% increase in value this fall.

Fuel and fertilizer prices. This one has a potentially negative effect. Ongoing conflicts in the Middle East and renewed tariff battles have continued to put the squeeze on farmers’ input costs. Farm profitability could have a wide range depending on when individual farmers were able to lock in prices this fall. One local farmer recently bought anhydrous ammonia at around $750 per ton, but those who wait too long could be stuck at $1,100 or more.

As always, individual sales may vary, but it seems that many folks understand there may not be too many deals in the countryside this fall. For now, here are some recent sales:

Brown County. North of Springfield, about 66.94 acres sold for $11,470 per acre, or $12,011 per tillable acre. The farm consists of 63.92 tillable acres with a Crop Productivity Index of 93.6.

Cottonwood County. West of Comfrey, about 80.53 acres sold for $13,500 per acre, or $14,113 per tillable acre. The farm consists of 77.03 tillable acres with a CPI of 95.2.

Dodge County. Southwest of Kasson, about 238.64 acres sold for $15,079 per acre, or $15,500 per tillable acre. The farm consists of 232.16 tillable acres with a CPI of 93.5.

Faribault County. North of Kiester, about 153.82 acres sold for $9,654 per acre, or $11,000 per tillable acre. The farm consists of 133.44 tillable acres with a CPI of 92.5.

Fillmore County. West of Harmony, about 40 acres sold for $9,754 per acre, or $11,913 per tillable acre. The farm consists of 32.75 tillable acres with a CPI of 85.2.

Jackson County. Northeast of Round Lake, about 100.86 acres sold for $13,300 per acre, or $13,780 per tillable acre. The farm consists of 97.35 tillable acres with a CPI of 88.3.

Nicollet County. Northeast of Norseland, three parcels were sold. The first parcel of about 40.23 acres sold for $16,200 per acre, or $16,728 per tillable acre. The farm consists of 38.96 tillable acres with a CPI of 95.6.

The second parcel of about 39.65 acres sold for $14,300 per acre, or $15,233 per tillable acre. The farm consists of 37.22 tillable acres with a CPI of 89.6.

The final parcel of about 67.75 acres sold for $12,600 per acre, or $12,705 per tillable acre. The farm consists of 67.19 tillable acres with a CPI of 88.1.

Nobles County. North of Worthington, about 80.55 acres sold for $15,792 per acre, or $15,990 per tillable acre. The farm consists of 79.55 tillable acres with a CPI of 95.8.

Sibley County. West of Winthrop, about 232.18 acres sold for $14,200 per acre, or $14,766 per tillable acre. The farm consists of 223.27 tillable acres with a CPI of 92.8.

Hertz Farm Management compiled this list but did not handle all sales. Call Hertz at 507-345-5263 or visit hertz.ag.

Yields, input costs push and pull on preharvest farmland market

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