A 234.65-acre tract of farmland in southeast Minnesota, complete with two operational wind turbines, recently sold for $2.87 million at a highly anticipated auction. The event attracted significant attention from both local and online spectators, reflecting the growing interest in agricultural land values and renewable energy investments.

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Strategic Location Draws Significant Interest

The property is located approximately 15 miles east of Austin in Mower County, an area renowned for its fertile soil and proximity to Iowa. Drone imagery reveals an expansive landscape dotted with numerous wind turbines across neighboring farms. Greg Jensen, the LandProz agent overseeing the auction, was not surprised by the robust participation. Around a dozen bidders competed for the land, starting at $10,000 per acre, while nearly 400 observers followed the proceedings closely. This level of engagement underscores the importance of understanding current market trends for those involved in agriculture. Participants were either existing landowners or potential buyers and sellers keen on gauging market conditions. The presidential election also played a pivotal role, as evidenced by the heightened activity post-election. Jensen described a previous sale just days after the election as particularly dynamic, highlighting the positive impact on land prices and interest.

Past Ownership and Transition

The Curley family, specifically cattle farmers Jared and Maxine, owned the property. In recent years, they leased the land to a row-crop farmer. The farm’s history traces back to Jared’s parents, who passed away—his mother in 2020 and his father in 2007. This transition marks a significant chapter in the property's legacy. The buyer, hailing from the local area, has yet to decide whether to farm the land personally or lease it out. The transaction is set to close early in January.

Economic Insights into Farmland Values

According to USDA data, the Curley farm sold at a premium compared to Minnesota’s average land value. The state’s real estate value averaged $6,450 per acre in 2024, representing a 6% increase from the previous year. David Bau, an educator with the University of Minnesota Extension, notes that despite low commodity prices over the past two years, land prices have remained stable. However, he anticipates downward pressure on rental rates, which could influence land values.Bau emphasizes the correlation between land values and grain prices. If corn prices stagnate, rental prices will likely decrease, reducing landlords' income and potentially lowering land prices. Budgets for 2025 are already showing negative figures for cash-rented ground, signaling a challenging season ahead. Cropland cash rent in Minnesota averaged $200 per acre in 2024, with irrigated cropland at $214 per acre and pasture at $32 per acre.

Rising Role of Renewable Energy in Agriculture

The Curley farm features two operational wind turbines generating income under a contract with Excel Energy. In 2024, this arrangement paid out $22,585.35, with payments continuing until 2048. Wind turbines contribute significantly to Minnesota’s electricity generation, accounting for 25% of the state’s power supply. Bau suggests that wind turbine growth may plateau due to infrastructure limitations but observes a surge in solar panel development.Solar energy provided 4% of Minnesota’s total electricity generation in 2023, primarily through utility-scale installations. This shift towards solar reflects broader changes in renewable energy adoption. As Bau tours the state, he notices more solar grids, indicating a promising future for alternative energy sources in rural areas.

Detailed Property Overview

The property sold for $12,000 per acre, excluding a 2% auction fee. It comprises 234.65 acres, with 226.28 tillable acres according to FSA estimates. Key attributes include a Crop Production Index of 92.1, 112.63 acres of corn base, and 112.27 acres of soybean base. The predominant soil types are Oran silt loam and Clyde silty clay loam. Real estate taxes amount to $12,968 annually, and the land features approximately 127,085 feet of pattern tile.Produced in partnership with American Farmland Owner (AFO), this analysis aims to provide valuable insights for landowners seeking informed decisions for their farmland, ensuring the continued prosperity of American agriculture.