It’s no secret that the farm economy has been robust for a considerable stretch. That persistent strength can be seen in the market value of farmland in Minnesota, especially when compared with other types of property, particularly residential, which is by far the state’s largest segment of so-called real property.
It’s almost like agriculture didn’t get the memo on the recession and slow recovery. Thanks mostly to steadily strong crop prices, farm property saw exceptional growth during the recession through 2010 (see Chart 1). The last two years have been flatter—but still growing—in stark contrast with virtually all other real property. Like corn during a good growing season, farmland value as a share of all real property grew from 16 percent in 2007 to 24 percent in 2012 (see Chart 2).