An uptick in commodity prices can impact on land values. Wells Fargo Agricultural Economist Michael Swanson says there’s been strong farm real estate pricing in Minnesota. “Between lower financing costs and $11 soybeans, there’s a lot of bullishness. Also, any market in the sugarbeet region is seeing good pricing at the moment. How long it will last is hard to say, but there’s certainly not been any retrenchment for real estate pricing.” According to Swanson, there’s good land in southern Minnesota at $8,000 to $8,500 an acre. “People are willing to line up long-term rent relationships and go ahead and make that purchase. There’s outside and farmer-operator interest as well,” says Swanson. “Stronger operators will finish out the year strong, but there will be lots of cash burning a hole in some people’s pockets. Whether its farm equipment or a new piece of land, there will be a lot of action.”
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