Farms Are Selling in Different Ways, Minnesota Land Broker Believes
- Brooke Bouma Kohlsdorf
- 4 days ago
- 2 min read
John Giebenhain is a LandProz agent who primarily sells agricultural and recreational land through Central and West Central Minnesota. After working in the fishing and hunting industry earlier in his career, he has now spent this decade as a licensed real estate agent.
And Giebenhain, who lives in Corcoran with his family, has noticed some recent changes in farmland sales.
He talked with American Farmland Owner about the changing land sales and how commodity prices and the struggling agriculture economy are impacting land values.
Here is part of the conversation:
AFO: “How are farmland sales in your area?”
Giebenhain said the second quarter is historically a slower time of year for farmland sales. One thing he has noticed recently is a shift in how land is sold.
“I’m seeing more sealed bid auctions and have heard the same is happening across the Midwest. It’s kind of a hybrid approach to a traditional auction and listing,” Giebenhain said.
“It can be recommended for various reasons: lower grade or less desirable farms, demand in the area is lower, market conditions or maybe the seller just wants to keep it more private,” he said.
Sealed Bid Auctions vs. Live Auctions
Sealed bid auctions are different from live auctions. They include a process where the highest offer is determined after participants submit confidential bids. If the seller’s reserve price isn’t met, it can be negotiated from there. Or bidders might be asked to resubmit a higher bid.
Minnesota Farm Sales
Giebenhain shared a breakdown of the top 15 tillable sales from June – August:
1,879 total acres sold / 1,813 tillable acres
Average Price per CPI Point = $140.73 (80%+ tillable)
Average Price/Acre = $12,539
Average Crop Productivity Index (CPI) score = 92.42
Top selling farm on a price per acre basis brought $14,702/acre out of Blue Earth
County on a Sealed Bid Auction (73.38 acres, 73.1 tillable, 97 CPI)
Top 15 Sales by County: Blue Earth, Waseca, Sibley, Redwood, Mower, Renville, and
Nobles
Sales methods: (5) sealed bid auctions, (4) live and online auctions, (6) traditional listings
RELATED: Here is what is happening with farmland values across the United States.
