Great tillable farm with CPI’s in the high 90’s! Awesome investment opportunity and addition to existing farming operations.
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May Showers??
May showers? I thought it was April showers bring May flowers? We all know it’s been wet. The corn is yellow, the tile lines are pumping and there are still flood warning for much of the area. The good news is planting is almost complete, so we look to be in good shape for not having any acres not planted due to wetness.
The Land market is very strong for high quality farms and has actually risen statistically over the past month. The money is coming from the same places. 80% investors getting out of more volatile markets and efficient operators needing more feed, ground for manure, or have a big operation and want to continue to grow.
High quality tillable in Minnesota is in the $6500-$7500 per tillable acre range with some going into the 8’s and 9’s. B and C quality will drop you down about $1,000 per acre for each step. Iowa land prices in our area are also very strong adding about 20%+ to Minnesota numbers mainly due to more investors and lower property taxes.
Timber ground is also holding strong for the right hunting tracts. Timber values (White Oak and Walnut) are up bringing the ground with them. Timberland is in the $3000-$4000 per acre range on a regular basis with many factors affecting prices like logging history, CRP, access, neighborhood, road type, build able, easements, deer history, food plot establishment, and neighbors.
Recreational ground is still very sought after.
If you are interested in buying more land or selling and relocating a tract you have give one of our agents a call to find out what your land is worth today. We would be happy to help in any way we can!
Endless Opportunity!
This property offers countless possibilities to buy as a whole, or to buy the perfect sized parcel for agricultural purposes or recreational! Being located in the middle of big buck country, world class trout fishing, minutes from the Mississippi River, and right off I-90 make this the ideal location. The surrounding bluff country offers breath taking scenery. The property is covered in deer sign and is a property that will produce giants year after year. The property also includes a 4 bedroom, 1 1/2 bath home, a 60×90 pole shed used for workshop and storage with additional buildings. If you are interested in this property, or a parcel of it, call Minnesota Land Specialist Dave Walch at (507)421-0474.
Market Update
The month of April was busy in the land business. With auctions getting high prices, quality farms becoming available, timber markets headed north, interest rates, and 1031 exchanges were all hot topics for the month. The market is strong on both sides of the fence with sellers looking to take advantage of good prices and buyer interest and financing availability also sitting strong. Banks seem to be comfortable with the current market and are looking to lend rurally.
Exchange opportunities are being filled with buyers from selling other real estate or stock gains and investing in land and having us manage the property. Interest rates are in the 4.35-4.5 rates on ground and requiring 20-25% for the most part (Do not forget about beginning farmer programs at the bank and FSA office).
Quality ground in all categories is moving. Tillable in Minnesota is in the $6000-$8000 per acre range regularly and hunting land is in the $3000-$4000/acre range regularly. Iowa has even more interest and higher prices. One thing to mention is soft wood timber is increasing in value and hardwoods always seems to follow. Also whiskey barrel production and trendy interior white oak is becoming very sought after so white oak is up and headed higher in our opinion.
We are now brokered in the state of Wisconsin and will be adding that to our future reports. If you would like anyone you know added to the report for their business or personal investment interest, please email their email address to Lucas@hpraa.com.
-High Point
What Are Land Prices Doing?
What Are Land Prices Doing?
1st quarter land sales were surprising when we ran the numbers overall. Here are a couple things our land brokers put together for prices and market motivations.
Here’s the why: Interest rates are low, there is not much land on the market, timber prices are headed up and the banks are cautious but lending money. Also there has been an increase in the residential, commercial, and stock market assets giving buyers higher rates of return in those categories or exchange opportunities.
Here’s the prices: tillable land in flat country C quality 5000/ acre, B quality 6-6500, A quality 6500+ these prices are fluctuating based on neighborhood, tile, and windmill income.
Tillable land in the hills on average is trading C-4500, B-5500, A-6000 (in the right neighborhood and at auction much higher potential due to access and scarcity.)
Hunting land- buy it, everyone is getting kicked off their grandma’s back 40, timber prices are headed north, rates are low, CRP ROI’s are 4-8%, and build-able sites are sought after. Prices are $2800-$4500/Acre based on a number of factors, however the demand is very high and it is a buyer and sellers market right now for many reasons.
Give us a call for any specific questions or needs you have or to just meet our agents, they will find you what you are after.
-High Point
40 +/- Acre Sand Mine For Sale in Olmsted County, MN
If you are looking for a great investment opportunity this is the property for you! Located conveniently on the SW side of Rochester, MN this 40 acre piece of property is extremely accessible with I-90, Highway 63 and 52 just minutes away. 20 acres of the property is an active Sand Mine for a great source of income. All equipment used to run the mine comes with the sale, and an existing Conditional Use permit is in place. The remaining 20 acres includes a house, garage, office, storage building and a great piece of woods, which offers great hunting opportunities or to possibly sell marketable timber. This property truly has it all for someone looking to get into the mining business.
For more information on this one of a kind property, contact Kevin Hart at 507.259.4482 or email him at kevin@hpraa.com.
Keywords: sand mine, for sale, mine, sand, 40 acres, forty acres, investment, investment opportunity, rochester, minnesota, southeast, money, income, work, house, garage, hunting, fishing.
177.76 Acres For Sale in Fillmore County, Minnesota
If you are looking for a property that can both produce income and offer great recreational activities this is a property for you. With 100 tillable acres to produce an income off agriculture or CRP, you are sure to make money off this investment. Along with the 100 tillable acres, this property also offers 77.76 acres of woods which offers great hunting opportunities located just a few minutes from scenic Lanesboro, MN. Lanesboro is a great little town that offers plenty to do for someone visiting from afar. With a local trout hatchery not far away, you are also only minutes away from world class trout fishing in several stocked streams that carve out this beautiful country. If you love the water but aren’t a big fan of fishing, the Root River which runs right through Lanesboro is also great to canoe, kayak or tube during the summer months. There is also a spectacular bike trail that follows the Root River through beautiful bluff country that winds 42 miles through the valley with Lanesboro at its heart. It also connects up with the Harmony Preston Valley State Trail for an additional 18 paved miles. This property has great buildable sites and has been platted for development or individual sites so you can build your dream home on this one of a kind property and have unlimited access to all the great opportunities Southeastern Minnesota has to offer. Contact listing Broker, Jacob Hart, with High Point Realty and Auction, at 507-259-1065 or Jacob@hpraa.com to learn more about this exciting property.
Keywords: Agricultural land for sale, Hunting land for sale, Recreational land for sale, beautiful property, one of a kind, outstanding, Lanesboro, Minnesota.
Land Auction Fillmore County, MN
Here is a very very nice farm located in York Township Fillmore County, MN. This farm is in an excellent area of southern MN for farming. If you are looking for land for sale in Fillmore County, Minnesota this property will be offered at auction March 31st in Lime Springs, IA
70 Acres Allamakee County, IA
Check out this beautiful hunting land in NE Iowa. This farm is located in Allamakee County, Iowa just outside of Decorah Iowa, New Albin Iowa, and Lacrosse Wisconsin. This property is primarily hunting land however has a couple building sites if you wanted to put up a house, shed or cabin. If you are looking for Iowa deer hunting land for sale this property offers a great hunting history and is priced very well for this area.
Farmland Values: Stable Investment with a bright future
Farmland values in Mower County, MN have taken between a 5%-25% hit depending on the area and the quality of the land. There are many factors like drain tile, tillable ratios, access, exposure, soils, and past production history that will make a farm more valuable.
When you look at land as an investment you want to factor in as much as possible to make the most informed decision. Even if you are not a farmer or didn’t grow up on a farm, land is a very good option for future appreciation, stability, and annual dividend. High Point provides land management services that can take care of your farm portfolio to not only make sure you are getting your highest annual return but your farm is being taken care of so when its time to sell it will be the pride of the neighborhood.
Farmland as an investment may have multiple sources of income and usually few expenses. We will use this newly listed farm in Mower County, MN as an example. This farm consists of 155.55 total acres of which 133.17 are tillable acres. These tillable acres have an average Crop Productivity Index (CPI) of 93.6 which is very close to as good as it gets on a 0-100 scale across a quarter section in Southern Minnesota. This farm has rental estimates currently of $270 per acre which will yield $35,955.90 this year in tillable rent as well as a windmill and tower that produce just over $8,000 annually. Total annual rental income $43,955.90
Expenses on this farm are property taxes which are projected for 2016 at $3784 giving you $40,171.90 in net income. Divide that by a purchase price of $1,050,000 and you have a 3.82% return.
If you look at the map next below the initial soil map you see that there are about 151.2 acres with exceptional soils. This is the existing building site as well as a grass area to the southeast side of the farm. These acres are not currently tillable but with a couple days work while tilling the farm most of these acres could be converted into tillable productive acres.
Let’s say you were able to increase tillable acres to 145 tillable acres and tilled the farm for an additional $100,000. You would now have a farm that would rent for 290/acre x 145 adding the 8,000 for the windmill would give you an income of $50,050 minus $3784 in property taxes would give you a 4.02% return on the 1,150,000 invested with a value increase to a near perfect farm including a windmill.
If this investment is held while producing an annual dividend and the market corrects to where it was in 2013 this farm would be worth top end values that we saw between 9,000-10,000 per tillable acre and value for windmill as well. Guess there is a reason there are hundreds of absentee land owners in Mower County, MN.
Recently Sold Land in Iowa
These are a few of the farms we have recently sold in Iowa and Minnesota. The farmland and hunting land market in SE MN and Northern Iowa has been steady even with low commodity prices holding farm profits down.
Land for sale Winona County, MN
This Farm outside of Houston county Minnesota is sure to be a nice farm for someone in the near future. If you are looking to buy farmland or buy hunting land in Southern Minnesota this is a very nice parcel that might fit the bill.
Land For Sale Southern Minnesota and Northeast Iowa
Land For Sale Southern Minnesota and Northeast Iowa is a common term around our offices located in SE MN and NE IA. All we do is sell and manage farmland in these areas and our MN land brokers and IA land brokers are very passionate about what they specialize in. High Point has land for sale in Winona County, MN, Fillmore County, MN, Mitchell County, IA, Howard County, Ia, Olmsted County, MN and Mower County, MN to name a few. We have farm auctioneers and land auctioneers that specialize in farmland sales, farmland auctions, estate auctions, farmland estate auction, and other types of land sales. If you want more information in selling the family farm or have any questions about selling land in MN or Iowa feel free to contact us anytime.
A little bit more about our farm real estate agents in Minnesota and Iowa
2015 High Point Land Sales Report (2015 Land Sales Minnesota and Iowa)
2015 High Point Land Report
Farmland Prices in the 2015 calendar year showed market volatility to say the least. In South East Minnesota we saw a 5% drop in High quality values, 14% drop in medium quality, and 18% drop in low quality. In North East Iowa we saw a 3% drop in high quality, 5% drop in Medium quality, and 12% drop in low quality.
Buyers of Farmland from our data in 2015 were as follows:
• 77% Farmers/Operators
• 23% Investors (8% of which were absentee to the purchasing state)
• 31% of buyers or sellers exercised section 1031 Exchange opportunities
Purchase Motivations varied from portfolio diversification with the volatility of the world economy, continued low interest rates or other investment rates, scarcity of available farmland in the immediate area, and lower buyer competition allowing for a purchase discount from the past two years of higher prices.
Sellers of farmland were from 3 distinct categories. Estates looking to settle, split between heirs, or diversify partially into other 1031 exchangeable real estate with a higher return and depreciation options. Partnerships with assets in other categories looking to still show a capital gain on the farmland and help cover a loss somewhere else. Sellers with a better opportunity elsewhere, with property taxes increasing substantially in the last 3 years on farmland and rental rates decreasing with low commodity prices the landowners are getting squeezed down to smaller margins. This has motivated sellers to exchange into other real estate investment options tax-free or tax reduced while still selling at a gain before the market corrects fully.
Sales Methods have included Live Private Auction, Sealed Bid, Negotiated off market, and Traditionally listed. We offer a different option based on each farm and each clients needs. The highest prices were achieved at live private auction with local investors and neighbors competitively bidding, especially for desirable tracts with good access, soils, and drainage systems.
Hunting and Recreational Land values saw a slight overall 4% increase as we have seen the local non-farm economies rebound and rural home building also increase. We have seen prices on low quality/pasture land from $1500-$2500/ acre. More desirable parcels in good management areas with property access, available water, buildable sites, and a picture or two of a big buck sell in the $3000-$3500/ acre range.
We hope you will find our annual High Point Land Report beneficial to you or your business. If you have any questions on the provided information or on an individual tract please feel free to contact our office at 507-218-1243 or email us at sold@highpointauctioncompany.com
www.HPRAA.com
520 Main Street South Stewartville, MN 55976 – 507-218-1243
NE Iowa Land Auction
This 80 Acre Howard county Land Auction is to be held at the Lime Springs Community Center in Lime Springs, Iowa. This Land for sale in NE Iowa was a great success of a public land auction for the area bringing nearly $8950 PT acre. This land auction in Northeast Iowa is sure to set the bar for the farmland prices in Northern Iowa for the 4th quarter of 2015. If you have any questions about Land or Farms feel free to contact our office in Chester, Iowa or our land for sale office in Stewartville, MN 507.218.1243
Fillmore County, MN Land Auction
This 102 Acre Fillmore county Land Auction is to be held at the Lime Springs Community Center in Lime Springs, Iowa. The SE MN LAnd Auction is to be sold in one parcel and is sure to be a good representation of what farmland prices are doing in SE Minnesota. The farm for sale in Fillmore County is a near perfect parcel with a complete tile system and average CPI of 94 across the farm. This southern Minnesota land auction is to be held on Dec 10th 2015. Close cities to this Land Auction are Spring Valley, MN Leroy, MN Preston, MN Chester, IA Lime Springs IA, ELma Iowa, Decorah Iowa, Grand Meadow MN and Rochester, MN. This Farm for sale is a great opportunity for any area farmer or as a SE MN land investment. For more information on this Land Auction in SE Mn or any of our other Land For Sale in Minnesota or Iowa feel free to stop by our office in Chester, IA or our land auction company in Stewartville, MN 507.218.1243. 
Mower County, MN Land Auction
This Mower County, MN farm for sale is a 3 tract 364 acre land auction spread across one of southern Minnesota’s most fertile corn and soybean producing agricultural counties. This southern Minnesota land auction has 3 parcels 102, 102 and 160 acres. The SE MN Land Auction is to be held in early Dec 2015. This highly productive agricultural land auction will be sure to set a post harvest example of what land is bringing in Mower County, MN in SE MN and NE Iowa land sales. These farms for sale are near Dexter, MN, Lansing MN, Elkton, MN Austin, MN, Grand Meadow, MN, Leroy, MN and Stewartville, MN. If you are looking for a farm auction in one of these areas give us a call. For more information on this South Central Minnesota Land Auction be sure to give us a call at 507.218.1243 or stop by our Chester, IA land auction office or Stewartville, MN land auction company office. 
Howard County Iowa Farm Auction
Land for sale in Howard County Iowa is not your everyday event. Farms in this area are held for generations and rarely does a property of this quality and accessibility come up for sale. This farm not only has great soils and yield potential compared to other land in the Cresco/Lime Springs IA area but has access along one whole west side to HWY 63 headed into SE Minnesota towards Rochester to the north. This Iowa Land Auction will set the stage for what Northeast Iowa farm land prices may do to finish off the year 2015. 
Wabasha County MN Farm for sale
We just closed this Wabasha county Minnesota farm. Farm is all wooded with timber assets 5-10 years out from harvest. Great hunting, nice access and close location to Wabasha and Hwy 61