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Gap between good and not good land widens

A Minnesota ag lender says quality farmland is holding its value, but lower quality land has fallen off.

Kent Thiesse with MinnStar Bank in Lake Crystal adds that’s true whether it’s bought or rented land.

“We’re seeing the gap widen out a little bit based on quality of land, and over in our area tile drainage.”

He says farmers are paying closer attention to drainage and soil fertility as margins get tighter.

“We had about three pieces of prime farmland about a month ago that brought pretty top-dollar above $8,000 dollars an acre, which seems kind of high given where we’re at.  But then about a week later we had some land that was floored at $6,000 and they didn’t have a bidder on it.”

Thiesse says land auctions with multiple bidders can also drive values above what current economics might warrant.

Thiesse made these comments during Brownfield affiliate KDUZ’s (of Hutchinson, Minnesota) Farm Forum Thursday.