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Successful Land Sale: Southeast Minnesota Land Averages $7,050
Ahhh, farmland. Who wants to buy it when corn prices are so low? Turns out, plenty of people, if this week’s Successful Land Sale is a guide. The sale of 69.76 acres just north of Zumbrota, Minnesota, in Goodhue County occurred September 29. There were more than 100 folks in attendance and 19 registered bidders.
Soils on this tract are mostly very good to excellent, featuring mostly Mt. Carroll-Hersey complex, with an overall Productivity Index of 85.7 (based on a 0- to-100 scale). Half the tillable farmland has a PI of 90 or higher. There are 66 acres of tillable land, with the rest in waterway, woods, and waste. It sold for $491,808 ($7,050 per acre), which beat expectations, according to auctioneer Matt Maring of Matt Maring Auction Company. “This is a good area, with well-established beef and dairy farmers who have been very successful and have good cash flow,” he says. The property was purchased by a local dairy farmer.
This is the third auction Maring has had in Goodhue County this year. A tract a few miles away sold in January for $400 more per acre. It was a slightly inferior farm in terms of soil quality, but commodity prices were more bullish at that time, Maring says.
In 2015, the average cash rent for the county was $242 per acre, according to the University of Minnesota. In 2016, farmland in Zumbrota Township of Goodhue County is valued at about $6,200 per acre. The county has a history of good crop yields. Last year, the average corn yield in Goodhue County was 202.4 bushels per acre; soybeans were 58.1 bushels per acre.
For more information on this tract of farmland, view the full AcreValue report.
Best of the Rest
Indiana, Miami County: 271 acres in six tracts northeast of Peru sold September 22. Tract 1, 24.4 acres (all tillable), has mostly Pewamo silty clay loam soils. Tract 2 is a 1-acre grain bin site. Tract 3, 64.6 acres (all tillable), has mostly Aubbeenaubbee and Pewamo soils. Tract 4, 63 acres, has 53 tillable acres with mostly Blount soils (5 acres in woods and 4 acres in CRP). Tract 5, 49 acres, has 19.75 acres tillable (mostly Morley soils) and 28.5 in woods. Tract 6, 69 acres, has 58 acres tillable (mostly Glynwood silt loam soils) and 10 in woods. The land sold for $1,125,000 ($4,151.30 per acre). Halderman Real Estate and Auction had the sale.
Minnesota, Jackson County: 80 acres northeast of Rost sold September 27. The tract is desirable because it has very good soil, is an "inside 80," with limited road right-of-way, according to auctioneer Dan Pike of Dan Pike and Associates. It is tiled and features mostly Spicer-Lura and Clarion soils and a PI of 86.2. It sold to a local farmer for $592,000 ($7,400 per acre). Dan Pike and Associates Auction had the sale.
Missouri, Chariton County: 218 acres northwest of Glasgow sold September 26. The land sold as one tract and is 95% tillable, featuring mostly Tina silt loam soil. There are 1.9 acres in CRP, paying $242 through next year. The tract sold to a neighboring farmer for $1,308,000 ($6,000 per acre). Most of the farmland is considered gumbo-type soils, according to auctioneer Daniel Enyeart of Enyeart Auction and Realty, which had the sale.
South Dakota, Minnehaha County: 204.99 acres south of Sherman sold September 22. There is one tract, with about 177 acres tillable, 19.4 acres in CRP (paying $1,614.08 through 2018) and the rest in creek and woods. Soil types are mostly Moody silty clay loam and Chaska loam. The land sold to an investor for $1,179,000 ($4,750 per acre). LandMark Realty and Auction conducted the sale.