Showing posts with label farmland appraisals. Show all posts
Showing posts with label farmland appraisals. Show all posts

Monday, April 22, 2013

Stearns County farmland prices are rising

Hard to believe that it is time for planting when the ground is covered with 6 more inches of fresh snow after another late season snow storm today, but I can't wait to get in the fields. I doubt I'm the only one - especially after the prefect spring we had last year.

I just read an article today about farmland prices in Stearns County, which are also ready for planting. According to this article by Kirsti Marohn of the St. Cloud Times, the value of prime farmland in Stearns County jumped 15 to 18 percent in the last year, according to the Stearns County assessor's office. The article is included below:

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Area farmland fetcheshigher property value
Smaller farms could find it hard to thrive as taxes, seed prices increase

Written by Kirsti Marohn

Apr 22, 2013
When some Stearns County farmers opened their property valuation notices in the past few weeks, they saw some startling numbers. The value of prime farmland jumped an average of 15 to 18 percent from last year, according to the county assessor’s office.

That means many farmers could be paying more property taxes in 2014. But despite that, there haven’t been large crowds of people showing up to local boards of appeals, County Assessor Gary Grossinger said.
Grossinger said turnout at those meetings, where landowners can challenge their property’s assessed value and classification, has been “probably the lightest in my 40 years.”

That’s likely because many farmers had a profitable year last year thanks to high commodity prices, and are aware of the rising prices agricultural property has been fetching.
The average sale price of farm land has increased from $4,000 an acre last year to $4,600 an acre so far this year, Grossinger said. There also have been a few sales for as much as $7,000 an acre.

“People know what the farmland’s going for,” Grossinger said. “When your neighbors sell for $7,000 (an acre) and we’ve got it on for $4,000, you’re not going to complain too much.”
Notices are sent to property owners every spring, informing them of their property’s estimated market value and taxable value. That value is used to determine how much the property taxes payable in 2014 will be.

Residential and commercial land values have been flat, which probably means owners of agricultural land will shoulder a bigger share of the property tax burden.
The level of spending by local counties, cities, townships and school districts also affects the final tax bill.

One significant shift has been the increasing value of large tracts of prime agricultural property, while buildable land closer to cities hasn’t been rising in value. That’s due to the lack of interest in developing property right now, Grossinger said.
“What’s selling now is good farmland,” he said.

George Hadrich, a corn farmer in Holding Township, said the rising property values are making it difficult for smaller farmers to survive. Hadrich said the value of his 270 acres jumped about 20 percent from last year, and he worries that his tax bill will increase the same amount.
Although corn prices have been higher recently, so has the price of seed corn, machinery and fertilizer, he said.

“The two of us are still working part time to make things work out,” the 71-year-old Hadrich said.
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If you think now is the time to get your farmland appraised, or perhaps now is the time to sell your farmland, please give me a call at 320-894-7528.

Thanks,
Noah
noah@farmlandman.com

Thursday, January 31, 2013

Stearns County farmland price per acre

Wow - it's hard to believe that January is coming to an end already! It feels like I just celebrated the New Year, but I've been busy with events and meetings for the Minnesota Corn Growers Association and my family's farming operation so the month has really flown by.
 
Earlier this week I came across an interesting article about farmland prices a little closer to home, in Stearns County. In fact, we farm some land in Colfax township, which is right along western Stearns County. Some highlights from the article, written by Kirsti Marohn of the St. Cloud Times, are as follows:
 
  • The price of farmland in western Stearns County is reaching record levels. Sales for more than $5,000 per acre are becoming more common.
    • In fact, in Raymond Township, the price per acre went up almost $5,000 just in the last 5 years - from an average of $2,241 in 2007 to a sale of 75 acres for $7,224 in 2012.
  • Interestingly, "for the first time in almost two decades, land in western Stearns County is worth more than land on the fringe of the St. Cloud metro" according to Stearns County Assessor Gary Grossinger.
    • According to a local appraiser, recent sales prices have been in the $5,500 and $6,500 range.
  • Many farmers are looking to expand, pushing prices higher and making it harder to find available farmland. And farmers are buying the land - not outside investors. "It’s mainly large corn or sugar beet farmers taking the opportunity to buy adjacent land to expand," according to Mark Koehn, an appraiser for Stearns County who specializes in farmland.
  • Much like the larger economy, there is always an element of uncertainty that casts a shadow on what has been a bright spot in the economy. Agriculture has been very strong for the last couple of years, but everyone knows that could change quickly if prices drop or if supplies outpace demand.

To read the full article, you can go to: http://www.sctimes.com/apps/pbcs.dll/article?AID=/201301280245/NEWS01/301280018 

If you think now would be a good time to sell your farmland, or even just have it appraised to see what the market value looks like right now, please give me a call at 320-894-7528 or e-mail me at noah@farmlandman.com and I will help you out!

Sincerely,
Noah Hultgren
noah@farmlandman.com 
320-894-7528

Saturday, January 26, 2013

Minnesota Land Economics

An interesting source for information on recent sales of farm land is the University of Minnesota's "Minnesota Land Economics" site, which is available here:

http://landeconomics.umn.edu/MLE/landdata/FarmLandSale/RunReport.aspx?RI=3155


From the base page, you can select the jurisdiction you're interested in - in most cases it's most helpful to look at counties, but you might also be interested in watersheds, major river basins, or NASS districts - the specific county (or other geography) you want, and a set of other attributes. This can include years, acres, price per acre, or total sales price. From there, just click on "Generate Report" and you'll get the data you're looking for.

For this blog entry, I looked at Kandiyohi County's farm land sales from 2009, 2010, and 2011, and found a total of 60 sales, with average per acre prices ranging between $2,000 an acre and $6,135 an acre. The maximum price was $7,869 per acre, from a sale in Willmar township in 2011.

If you wanted any help in exploring the Minnesota Land Economics site, give me a call at 320-894-7528 or send me an e-mail at noah@farmlandman.com.

Sincerely,

Noah Hultgren
noah@farmlandman.com
320-894-7528