Every farm sale means something to someone. This one meant a lot to me. The land is in Butternut Valley Township near Lake Crystal, just west of Mankato, home of Minnesota State University, Mankato.
A trustee called about selling his late father's farm. Neither of us knew yet that the land sat right next to the farm where my grandmother grew up. Here's how the trust sale worked, along with a little family history.
The short version: I represented a family trust selling 163.55 acres in Butternut Valley Township, Blue Earth County. About 151 acres were tillable, with a CPI over 95. It sold at auction for the sellers' target price and closed on February 14, 2025.
Key takeaways
- Trustees often have to balance the wishes of many beneficiaries. An auction gives a clear, market-tested result.
- Prime soils (CPI over 95) and strong local demand support a competitive auction.
- Get the purchase agreement language right when a buyer plans a 1031 exchange or may change the buyer name before closing.
- Local, hands-on marketing still works: posters, brochures at banks and equipment dealers, newspapers and postcards.
The property at a glance
| Location | Butternut Valley Township, Blue Earth County, MN |
|---|---|
| Size | 163.55 acres, about 151 tillable; the rest waste and some timber |
| Soils | CPI over 95 |
| Sale method | Auction with an auctioneer and ring men |
| Result | Sold for the sellers' target price |
| Closed | February 14, 2025 |
| My role | Listing agent for the trust |
What was the challenge?
The trustee inherited the land from his father about ten years earlier. The trust's plan was to sell the farm so the proceeds could be shared among the beneficiaries, and the trustee led that process. He lives about three hours from the farm.
The buyer paid cash through a 1031 exchange, and the buyer's name changed before closing. I made sure the purchase agreement included the 1031 language and listed the buyer as "and/or assigns" so the change went smoothly.
How did we approach the sale?
- Method: We chose an auction to get a clear market result for the trust.
- Marketing: MLS, our website, LandsofAmerica, Land.com, local newspapers and mailed postcards. We put up plenty of posters and left brochures at banks, ag equipment dealers and other farm businesses.
- Working with buyers: Most of the bidders were neighbors running large operations. I showed them the land, shared maps and information before the auction, and talked yields with them.
- Auction day: The auctioneer and ring men ran the sale, and my broker helped with buyers on the phone.
Why was this sale personal?
The farm sits next to a cemetery and one of the original farm sites where my great-grandparents lived. My grandmother grew up there, and more than a dozen of my relatives are buried in that cemetery. The trustee and I soon found out he had gone to high school with my mom, aunts and uncles, and that we're probably distant relatives, both of Welsh descent. My mom even came with me to put up the signs.
What was the outcome?
The farm sold for the target price. Adding the buyer's fee and figuring the price per tillable acre instead of per deeded acre, the result beat the sellers' expectations. I sent the documents to the buyer's attorney, helped with FSA information and closing directions, and coordinated with the sellers' attorney. It closed on February 14, 2025.
How does a trust farmland auction work?
- Confirm authority: The trustee confirms with the trust's attorney that they have the power to sell.
- Choose the method: An auction gives beneficiaries a transparent, market-tested price.
- Prepare the farm data: Maps, soils, FSA records and the title commitment.
- Market: Online, in print and through local farm businesses.
- Auction and purchase agreement: The winning bidder signs. Include any 1031 or assignment language at this stage.
- Close and distribute: The closing agent pays the trust, and the trustee handles distribution with the trust's attorney.
Lessons for landowners and trustees
- Transparency helps keep peace in the family. A public auction shows everyone what the market will pay.
- Price per tillable acre can tell a different story than price per deeded acre.
- Watch the buyer details. 1031 exchanges and assignments need the right wording in the purchase agreement.
"No farm is created equal. A high CPI doesn't automatically mean a farm yields well, so I'm very detailed in my farm listings. I include tile maps, yield data and even fertility data, so buyers can see how the land really performs. I also advise my clients on farm leases, whether they're keeping a renter, changing terms or selling with a lease in place."
— Jen Busch
The bottom line
Prime soils, strong local demand and a clear auction process gave the trust a result to be proud of. For me, it was a chance to reconnect with my family's roots.
Are you a trustee or heir with farmland to sell?
I'd be glad to explain how an auction or a listing could work for your trust. Request your free farmland valuation or call or text me at (507) 923-7657. You can also browse our current farm and land listings.
Frequently Asked Questions About Selling Farmland From a Trust
Can a trustee sell farmland at auction?
Generally yes, if the trust gives the trustee that authority. Confirm with the trust's attorney. In this case, the trustee chose an auction.
What does CPI over 95 mean?
It means very highly productive soils on the Crop Productivity Index, which runs from 1 to 100. Ratings like that support strong buyer demand.
What is "and/or assigns" in a purchase agreement?
It lets the buyer assign the contract, for example to another entity. That mattered here because the buyer's name changed before closing in a 1031 exchange.
Who usually buys farmland at auction?
In this sale, most of the bidders were neighboring farmers running large operations in the area.
How was the farm marketed?
Through MLS, our website, LandsofAmerica, Land.com, newspapers, postcards, posters and brochures at banks and equipment dealers.
Does a high CPI mean a farm yields well?
Not always. CPI rates the soil's potential, but drainage, tile, fertility and management all affect real yields. That's why I include tile maps, yield data and fertility data in my farm listings whenever they're available, and I help landowners with lease questions too. See my tips for leasing out your farm.
Disclosure: Details come from Jen's transaction records. Client names and sale prices are left out for privacy. This case study is general information, not legal or tax advice, and it does not guarantee any result. Every property and sale is different. Equal Housing Opportunity.
Sold by Jen Busch while affiliated with LandProz Real Estate, a previous brokerage, before she founded United Country Real Estate | Midwest Home & Farm Realty.