A parcel of farmland in southeastern Minnesota today sold for more than $14,000 an acre, a record for Winona County and near the all-time high for the state.
The 27-acre parcel near I-90 was sold at auction along with four other parcels from the same estate.
Minnesota's record farmland price of $15,000 an acre was set in Hennepin County in 2003, according to a University of Minnesota database.
The land's proximity to the freeway was probably a factor in the high bid because the farmland could be put to another use, Minneapolis Federal Reserve Bank regional economist Joe Mahon said.
He says high crop prices continue to drive up land prices. The statewide average is $4,900 an acre, much higher than in years past, he said.
To put that in context, that's an increase of about 23 percent over the previous year," Mahon said.
"A lot of this rise in farmland values that we're seeing is simply due to the fact that crop prices are higher," Mahon said. "Corn is over $8 a bushel right now. And that just means that the value of what you can produce on an acre of land is that much higher."