As another year comes to a close we are again thankful for the opportunities, safety, and good fortune of our family, friends, and clients. We have been blessed and able to expand in our business buying a new location in Stewartville, MN. Construction is underway and we should be up and running around Feb 1st.
This year like many, has offered challenges, hurdles, and successes. We started with a down swing in the corn and bean commodity markets on top of a late spring with cool temps. Coming off the highest prices in history this put an early damper on the land sales market. We saw on average a 7-18% decline in tillable land sales prices overall in Olmsted, Fillmore, Dodge, Freeborn, Steele, Wabasha, Mower, Houston, and Goodhue counties in the first two quarters of 2014. The weather took a turn for the best in most regions giving us plenty of good rain and heat units making the crops look very nice headed into 3rd quarter.
As the beans started changing color and the equipment started to be pulled out of the shed we had a slow up tick of prices in the commodity market. Corn and bean prices seemed to have set a bottom and sales prices/ acre of good land especially took a turn for stability. During 3rd quarter prices had come into the range of about a 5-12% slump from the previous year overall and as crops started to come out producers were happy with the results. Good yields and good early season harvest weather made for good early fall sales with stable prices and some farms back bouncing off the top of the sales charts in southern Minnesota and Northern Iowa. The investor interest really started plowing into farmland sales and rose to about 65% over operator and neighboring property owners.
Fourth quarter came with continued positive weather and yield reports. Land sales remained stable with investor interest climbing to around 75% by the end of the year. Sales overall showed a decline of 5-7% overall in tillable sales. Many of the sales remained very strong and good farms held their values very well. Nearing the end of harvest and with early snow prices began to rally in the commodity markets. Stability was continued by diversified operators in the Beef and Dairy markets, strong investor interest, low interest rates, and previous high income years.
The farm market volatile at times was very stable this year as a whole compared to the commodity market. Farms continue to be good strong long term investments enjoyed by their owners for years and years to come and offer a great renewable resources to our county. We are proud to have been privileged enough work with our clients this year through sometimes unstable waters and thank you all for your trust and friendship along the way. We wish you a safe and enjoyable holiday season and look forward to working with you for years to come.
Sincerely,
High Point Realty & Auction