Minnesota Farmland With Wind Turbines Sells for $12,000 per Acre

A 234.65-acre tract of farmland in southeast Minnesota with two wind turbines on the property sold for about $2.87 million at an auction held on Dec. 4.  

The land is about 15 miles east of Austin in Mower County, which sits along the Iowa border. Drone pictures of the property show dozens of wind turbines on adjoining and nearby farms. 

Greg Jensen, the LandProz agent handling the auction, wasn’t surprised by the sales price. About a dozen bidders took part in the sale, he said, with bidding starting at $10,000 an acre. But a much larger crowd of close to 400 people, both online and in person, gathered to find how the sale would unfold and gauge where prices are headed.  

“People who watch are genuinely interested in what farmland prices are doing,” Jensen said. “They either own land or are considering buying or selling it. They want to know where the market is today.” He isn’t sure what will happen with land values but believes the results of the presidential election have had a positive effect on prices and interest. He described a land sale he held two days after the election as a “barn burner.”

The Seller

Cattle farmers Jared and Maxine Curley owned the property and, according to Jensen, had been leasing out the land to a row-crop farmer in recent years. 

The property was previously owned by Jared’s parents who passed away — his mother in 2020 and his father in 2007 — according to their obituaries.

The Buyer

Jensen says the bidders in this auction were from the area and the person who ultimately walked away with the farm has land near the property. The buyer isn’t sure yet if he will farm it himself or lease the ground to another farmer. The sale is scheduled to close in early January.

Economic Analysis 

According to the USDA, the Curley farm sold for a much higher amount per acre than the average price for land in Minnesota. Minnesota’s real estate value, a measurement of the value of all land and buildings on farms, averaged $6,450 per acre in 2024, according to the National Agricultural Statistics Service Land Values 2024 Summary. This was up 6%, $340 per acre, from last year’s value.

David Bau, an educator with University of Minnesota Extension, says land prices have held steady recently despite low commodity prices the past two years. However, as he studies cash rent trends in the state, he believes rental rates are at a point where they will start decreasing and that downward trend will put pressure on land values.  

“There’s really a correlation between land values and grain prices,” he said. “If corn prices stay where they are, rental prices will go down. That means the income landlords can get for land will go down and force land prices down.”

As Bau visits farmers in his area, it’s becoming clear that the coming season will be a tough one. “Budgets for 2025 on corn and beans are negative on average for cash-rented ground, so something has to change.”

Cropland cash rent paid to Minnesota landlords in 2024 averaged $200 per acre, according to the USDA. Irrigated cropland averaged $214 per acre and pasture rented for $32 an acre.

Alternative Energy in Minnesota

The Curley farm has two working wind turbines that bring in income, and their farm isn’t alone. Minnesota wind turbines generate 25% of the state’s electricity, according to the Minnesota Department of Commerce.

Bau thinks wind turbine numbers will plateau because there isn’t enough infrastructure to use more energy. “Minnesota is saturated with wind farms because we don’t have enough transition lines.”

While wind energy growth may be slowing, solar panel development is growing in Minnesota. “I am seeing more of the grids on my tours of the state,” Bau said.  

Solar energy provided 4% of Minnesota’s total electricity generation and about one-eighth of the state’s renewable generation in 2023, according to the U.S. Energy Information Administration. More than four-fifths of the state’s solar power came from utility-scale installations.

About the Property

The property sold for $12,000 an acre (not including the 2% auction fee). The land includes a contract with Excel Energy for the two wind turbines that paid out $22,585.35 in 2024. The contract expires in 2048, so the new landowner will be paid the remainder of the contract.

The property is 234.65 acres and according to Farm Service Agency (FSA) estimates has 226.28 tillable acres.  

• Crop Production Index: 92.1
• Corn base: 112.63 acres
• Soybean base: 112.27 acres
• Prominent soil types: Oran silt loam and Clyde silty clay loam
• Real estate taxes: $12,968
• Tile: Approximately 127,085 ft. pattern tile

Produced in partnership with American Farmland Owner (AFO). AFO aims to help landowners make informed decisions for their farmland while ensuring the prosperity of American agriculture.