Wingert Realty Land and Services Mankato MN

January 1 April 15, 2017


The first quarter of 2017 has come and gone and we look forward to the joys of spring, the excitement of another planting season, and the anticipation of a good crop year.

It has been an active first quarter with a number of auctions spilling over into April. On April 12th, we completed the last auction before planting and are now compiling information on farms that will go to auction or will be for sale around the middle of June after planting and spraying is complete.

Listed below are some highlights of the first quarter:

-          71% of our Sellers were non-operating Landowners closing out estates. Sellers commented their primary reason for selling was the continued slow decline in land values. Their secondary reason was to divide the family’s shared asset into individual assets that each family member could utilize according to his or her own needs.

-          5% of our Sellers sold land to alleviate debt.

-          65% of the land sold was purchased by Investors, who came back into the marketplace after a four year absence. In typical market years, we see 65% Expansion Farmers and 35% Investors purchasing land. However, as commodity prices declined over the last four years, Investors sat on the sidelines, knowing that land values would also decline. During those four years, Investors purchased only 20% of the farms we sold. Investor purchases from January 1 through April 15 focused mainly on prime land/“A” quality land, causing this land to sell at a $1,000 per acre premium over current average land values.

-          35% of the land we sold was purchased by Expansion Farmers.

-          The four year decline in land values has stopped, at least temporarily. From January 1, 2017 through the first weeks of April, land values increased approximately 3.5%. Whether the land value increase will hold or the decline will take over again will be dictated by anticipated yields and commodity prices going forward.

-          There is still a shortage of land for sale, and the desire of Expansion Farmers and Investors to purchase is strong. We have had numerous auctions with 13 to 18 bidders competing to purchase. We have moved from a Buyer’s Market to a Seller’s Market.

If you have any questions on the information provided, feel free to contact us
at 507-345-LAND(5263)