Experts Fear Minnesota Farmland Prices Declining

Updated: 08/26/2014 10:23 AM
Created: 08/26/2014 10:16 AM

Experts say Minnesota farmers could be impacted by a decline in farmland prices.
Minnesota Public Radio News reports the Federal Reserve Bank of Minneapolis found in its most recent quarterly survey that the state's farmland prices are on the decline. Economist Joe Mahon says prices per acre are about 4.5 percent less than they were a year ago.
That means the value of Minnesota's farmland, which is worth about $100 billion, has fallen by $4 billion across the state.
Mahon says farmland prices began to fall when the selling price of corn reached unprofitable levels.
Others believe farmland prices are stable due to other factors.
Randy Dickhut is vice president of real estate operations at a company that sells Midwestern farmland. He says farmers and landowners have continued to benefit from low-interest rates.
(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Photo: AP/Danny Johnston

Minneapolis/St. Paul

36° | 25°
  • Feels like: 30° F
  • Wind: ENE 8mph
  • Humidity: 79%
  • Sun Morning clouds followed by afternoon sun
    27° | 22°
  • Mon Partly cloudy
    37° | 26°
  • Tue Partly cloudy
    38° | 26°
  • Wed Chance of afternoon showers
    40° | 27°