Market Update: Trends & Direction
February activity has been steady. Over the last 30 days, we’ve seen a consistent number of farms trade across southern Minnesota—a mix of auctions, listings, and private sales mostly in the 80-160 acre range. The strongest prices are still coming from quality farms that have good soils, clean layouts/access and good drainage/outlets. Where farms have mixed soils or layout challenges, we’re seeing more selection from buyers. That gap between “high quality” and “average” ground is widening slightly. This affects how we approach the market.
What’s Coming to Market
Inventory has started to increase as sellers weigh their options before spring planting. We’re seeing a mix of inherited farms and investors evaluating options. There’s not a flood of supply, but there is more movement than we saw a month ago.
Decision Trends Among Sellers and Buyers
The aggressive bidding we saw on everything two years ago has narrowed to:
- Premium farms
- Contiguous ground
- Farms that fit an existing operation
Buyers are considering farms carefully. They’re not chasing marginal land.
Values
Right now, values feel stable. Top-end farms are holding very well in the $12,000-$14,000 per tillable acre range. Average farms will move if they are priced right and marketed correctly. The biggest mistake we see? Assuming every farm brings premium pricing. The market is rewarding quality and penalizing mediocrity more than it did 12 months ago.
What This Means
If you own high-quality land, the market is still there. If you own average land, strategy matters more than ever. And if you’re a buyer, there are opportunities, but you have to be patient and selective.