Investing in Farmland: What Every Minnesota Land Investor Should Know

July 16, 2025

With stock market volatility and inflation concerns on the rise, more investors are turning to farmland as a stable, income-producing asset. In Minnesota—where agriculture thrives—investing in farm land offers long-term appreciation, recurring income, and strong legacy potential.


At Bunne Farms, we connect investors with high-value farmland across Southeast Minnesota. Here's what you need to know before making your first (or next) farm land investment.

A john deere tractor is plowing a field at sunset

Why Farmland? 5 Reasons It’s a Smart Investment

Stable Returns

Farmland consistently delivers 4–8% average annual returns, combining land appreciation with lease income.

Tangible, Inflation-Resistant Asset

Unlike stocks, land is physical and essential. As food demand rises, productive acreage becomes even more valuable.

Passive Income Potential

Lease your land to reliable farmers (or use a custom farming service like Bunne Farms) for recurring income.

Tax Benefits

Investors may qualify for property tax reductions, depreciation write-offs, and capital gains advantages.

Low Volatility

Farmland values move slowly and are less affected by market swings compared to other investments.

Types of Farmland Investment Options

1. Buy-and-Lease

Purchase land and rent it out to local farmers for income. Ideal for passive investors.


2. Custom Farming Partnership

Own the land and partner with Bunne Farms for custom farming. You stay involved in decision-making while we manage operations.


3. Real Estate Flip or Repositioning

Buy underperforming land, improve it (e.g., with tiling or conservation plans), and sell it for a profit.

Where to Invest in Minnesota Farmland?

Bunne Farms works throughout Southeast Minnesota, focusing on areas like:



  • Dodge County
  • Fillmore County
  • Mower County
  • Olmsted County

These counties are known for their productive soils, strong lease markets, and proximity to ag infrastructure.

How Bunne Farms Helps Farm Land Investors

As a family-run business with nearly 100 years in agriculture, we offer:



  • Land scouting and seller connection services
  • On-site evaluations and ROI estimates
  • Flexible lease structures and custom farming execution
  • Ongoing land care and tenant management

Whether you're an experienced investor or exploring your first rural property, we simplify the process from acquisition to operation.

FAQs About Farmland Investment in Minnesota

  • How much does farmland cost per acre in Southeast Minnesota?

    Prices vary by soil quality and location, but currently range from $6,000 to $12,000 per acre. We help you find options based on your budget and goals.

  • What returns can I expect on a farm land investment?

    Most farmland delivers 3–5% annual cash returns from rent, plus long-term appreciation of 2–4% annually.

  • Can I invest without farming the land myself?

    Absolutely. Our custom farming and lease management services let you earn passive income while we handle the farming.

Ready to Invest in Minnesota Farmland?

If you're looking for a secure, income-generating investment with real assets behind it, farmland is a top-tier choice. And Bunne Farms is your local partner to help you buy, lease, and profit with confidence.

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