Farmland prices fall in minnesota

Photo: Nosha

The report by the Federal Reserve Bank of Minneapolis found that prices per acre have fallen by 4.5 per cent in the last year, the equivalent of Minnesota’s $100 billion stock of farmland losing $4 billion in value.

The drop comes as a reversal following several years of steady growth in farmland prices, not just in the US but also the UK. Some experts are therefore concerned that this could mark the end of the farmland bubble. Indeed, sales also dropped from 259 in 2012 to 106 last year, according to the University of Minnesota.

Others, though, note that the current downturn is a result of the fall in corn prices, which has impacted demand from those keen to sell or buy agricultural land.

"The corn price has a huge influence on what the market is doing," Randy Queensland, owner of Land Resource Management & Realty in Grand Meadow, told Post Bulletin. "It reflects income, and the value of the land, within a certain degree."

"The land is held by financially strong people, and most of the operators are in good shape. I think it’s a real stable market."