Farmland Auction: Southwest Minnesota Land Averages $6,900 per Acre
Southwest Minnesota is known for its abundance of lakes, and its high-quality farmland. On November 21, it also was home to two different land auctions in neighboring counties.
Dan Pike Auction Company of Jackson, Minnesota, had the sale of 157 acres in Martin County, plus 388 acres in Cottonwood County.
The auction of three tracts totaling 387.84 acres south of Storden in Cottonwood County netted $2.589 million, or $6,675 per acre. The sale of two tracts totaling 157 acres north of Granada in Martin County netted $1.151 million, or $7,335 per acre.
These sales went “well,” and were in line with what Pike expected, he said. Both sets of properties are in areas in which farmland is highly sought after by farmers and investors. Read on for more details about the two auctions.
Three tracts totaling 387.84 acres were up for auction; the land is located between 6 and 9 miles south and east of Storden. The land had been gifted to the Evangelical Free Church of America. Two tracts were bought by farmers, the other was purchased by an investor.
- Tract 1, 150.72 acres, had 141.3 acres of cropland, featuring Nicollet silty clay loam and Clarion loam soils, with a Crop Productivity Index of 94 (based on a 0-100 scale). The rest is in pasture. It sold for $1.025 million ($6,800 per acre).
- Tract 2, 80 acres, has 75 acres in cropland and the rest in pasture. Soil types are Canisteo-Glencoe complex, with a 92.8 CPI. It sold for $472,000 ($5,900 per acre).
- Tract 3, 157.12 acres, has 150 acres cropland and the rest in road and waste. Soil types are Nicollet and Webster, with a 96.5 CPI. It sold for $1.092 million ($6,950 per acre).
Here’s a little trivia about Fairmont County, Minnesota: The actor who played Paul in the television show Cheers is from here. Doubtful he was at the sale of two tracts totaling 157 acres, but maybe he was.
Anyway, the sale was held to settle an estate. Both parcels were purchased by neighboring farmers and featured Canisteo, Canisteo-Glencoe, and Truman soils, with a combined CPI of 91.6. These tracts were adjacent to each other and featured mostly Class I and II soils.
- Tract 1, 80 acres, all tillable, sold for $628,000 ($7,850 per acre).
- Tract 2, 77 acres all tillable, sold for $523,600 ($6,800 per acre).
Pike notes there is still a lot of demand for farmland. “There are a number of people who would rather own land than any other type of investment,” he says. And there are plenty of farmers who have the money to buy.
Prices have definitely slipped since the peak of a few years ago, he adds.