MINNEAPOLIS (AP) — Minnesota‘s farmland prices dropped last year as the agriculture industry continued to face low crop prices and reduced income.
Sales data for fiscal 2017 reported to the Minnesota Department of Revenue and analyzed by the University of Minnesota indicate that the median price per acre was about $4,600, a 5.4 percent decrease from 2016, The Star Tribune reported .
Land values are important to a farmer’s equity, said Bruce Peterson, former president of the Minnesota Corn Growers Association.
Farmers who purchased land during record high prices five or six years ago are facing the greatest financial risk, though falling land prices may make it easier for farmers looking to rent or purchase land, said Mike Petefish, president of the Minnesota Soybean Growers Association.
The state’s agricultural sector, which has been struggling for four years, is weak but stable, according to the Federal Reserve Bank of Minneapolis.