Minnesota Agriculture: A Hidden Giant with Growing Challenges

Minnesota's agricultural sector is often misunderstood by urban residents, but it is a significant contributor to the state's economy. With an output of $27 billion in 2025, agriculture accounts for only 5% of Minnesota's total GDP.

The state's diverse farming industry includes corn, soybeans, and spring wheat production. In 2025, Minnesota produced 45 million metric tons of corn, which is comparable to iron ore production. Soybean output added another 11.3 million tons, with a quarter of that crushed locally for soybean oil and other products.

Transporting these crops requires significant efforts, supporting businesses and employment. With over 59 million tons of grain transported in 2025, the ag sector's impact on local economies is substantial. In Faribault County, for example, farming accounts for a significant portion of the economy, with $375 million generated from corn and soybean sales.

The agriculture sector faces challenges, including a historic five-year drought that has affected crop yields. With projected 2026 corn yields lower than expected, farmers are looking at higher prices to mitigate losses. In Faribault County, a farm selling $500,000 of corn would need 630 acres to generate this amount, with variable costs affecting net margins.