by Jared Augustine

September has seen an uptick in land sales, and so far, we have seen a continued stable land market. Farmers have continued to lead the charge on quality tracts, while lower-quality farms have continued to slip a bit in value and see less demand.

The number of farm sales is down so far this year, but there is a significant supply of land slated for auction in the coming months across Minnesota. We recently auctioned 668.46 acres of farmland, and we were pleased at the strength of that sale for the amount of land offered in the same neighborhood. All of that land was bought by local farmers.

While lower commodity prices over the past year have led to anticipation of a weaker land market, the interest rate cut of 0.5% by the Federal Reserve in the third week of September may act as a stabilizing force. Commodity prices are the No. 1 driver of the land market, but any type of relief — such as the first reduction in the federal funds rate in four years — will certainly help keep the ship afloat.

Early harvest reports I have heard have been scattered, to say the least. Some fields have yielded poorly due to too much rain in June, while others show good yields minus the drowned-out areas, bringing the average down. Overall, yields will vary significantly based on location and lead to very localized levels of aggressiveness for land sales.

Blue Earth County

Northeast of Minnesota Lake, about 155.9 acres sold for $11,500 per acre. The farm consists of 145.77 tillable acres with a Crop Productivity Index of 84.6.

About 40.25 acres sold for $11,000 per acre. The farm consists of 40.43 tillable acres with a CPI of 78.1.

About 161.07 acres sold for $11,500 per acre. The farm consists of 154.56 tillable acres with a CPI of 83.6.

About 150.83 acres sold for $11,200 per acre. The farm consists of 150.19 tillable acres with a CPI of 83.8.

About 80.23 acres sold for $11,500 per acre. The farm consists of 72.56 tillable acres with a CPI of 77.9.

About 80.18 acres sold for $11,000 per acre. The farm consists of 65.49 tillable acres with a CPI of 80.

Jackson County

South of Okabena, about160 acres sold for $13,050 per acre. The farm consists of 158.65 tillable acres with a CPI of 90.1.

West of Jackson. about 57.1 acres sold for $12,400 per acre. The farm consists of 53.82 tillable acres with a CPI of 93.3.

West of Jackson, about 80 acres sold for $11,800 per acre. The farm consists of 75.21 tillable acres with a CPI of 93.1.

Nobles County

South of Ellsworth, about 52.19 acres sold for $14,600 per acre. The farm consists of 50.92 tillable acres with a CPI of 88.

Roseau County

West of Warroad, about 261.2 acres sold for $2,551 per acre. The farm consists of 238 tillable acres with a CPI of 83.4.

Olmstead County

North of Eyota, about 40 acres sold for $12,500 per acre. The farm consists of 32.8 tillable acres with a CPI of 92.3.

Yellow Medicine County

West of Echo, about 61.29 acres sold for $11,257 per acre. The farm consists of 61 tillable acres with a CPI of 93.9.

Augustine is a Minnesota licensed real estate salesperson for Hertz Farm Management Inc. He lives near Minnesota Lake with his wife and children and works out of Hertz’s Mankato office. Hertz Farm Management compiled the list but did not handle all sales. Call Hertz in Mankato at 507-345-5263, or 800-730-5263, or visit hertz.ag.