Farmland Prices for the last 5 quarters have reduced overall about 7% during the term in our entire service area of MN, IA and WI. We have seen the high quality tracts hold their value slightly lower than where they were last year at this time. The mid to low quality tracts have slipped bringing down the overall average. Prices have currently stabilized in each category and we have many buyers in the market to purchase land in 2019. Our attention continues to be focused on interest rates, world trade, commodity prices, and weather for timely dry planting. Cropland lease rates have adjusted down an average of 9%.
Hunting & Rec Land Prices for the last 5 quarter term have increased 12% overall. The recreational property has a classification similar to tillable property. The properties of high quality have experienced a higher gain than the average bringing the marginal and low quality up with it. Timber, Hunting land quality, buildable sites, and water sources are some of the many
important topics determining quality. We currently have many buyers in this category as well and this market continues to rise with more interest as the weather improves.
Buyers of Land were 1031 exchange buyers, expanding farmers, recreational use, cash investors or re-entering past land owners, stock market exits, business use buyers, timber investors, and future home site buyers.
Sellers of Land were settling estates, 1031 exchange sellers, business partnerships, relocation due to hunting neighborhood, retiring farmers, geographically consolidating operators, and very few lender forced sales.
Sales Methods: our primary source of sales was traditional listings, follow by live and sealed bid auctions. We also completed a number of off market private sales and were involved in many 1031 exchanges.
We hope you find our annual High Point Land Report beneficial to you or your business. If you have questions regarding the information provided please feel free to contact our office at 507-218-1243 or Sold@hpraa.com