As the "wheat frontier" moved west, dairy operations and diversified farms replaced wheat-based agriculture.

The region has since moved away from dairy and beef operations, and it produces substantial crops of corn and soybeans, as well as hogs.

[12] St. Olaf College was founded in 1874 on the western edge of town by Norwegian Lutheran immigrant pastors and farmers who were eager to preserve their faith and culture by training teachers and preachers.

[citation needed] In the 1970s, completion of Interstate 35 six miles west of Northfield enabled the expansion of the Minneapolis–Saint Paul metro area south of the Minnesota River.

The square has several amenities including a large fountain, a memorial statue, and a concession stand known as "the popcorn wagon" run by the senior center.

Jesse James' and the James-Younger Gang's 1876 attempt to rob the First National Bank of Northfield serves as a heritage tourism draw for the town.

[16] The First National Bank of Northfield operates from a main office built half a block away from the historic site.

The Northfield Convention and Visitors Bureau provides comprehensive tourism information and visit planning services.

The gang killed the bank's cashier, Joseph Lee Heywood and a Swedish immigrant, Nicholas Gustafson.

A couple of members of the gang were killed in the street, while Cole, Bob, and Jim Younger were cornered near Madelia, Minnesota.

Jesse and Frank James escaped west into the Dakota Territory, while the remaining gang members were killed or taken into custody.

Considering the James gang as related to postwar insurgency, the raid has sometimes been called the last major event of the American Civil War.

Two popular Northfield slogans are "Jesse James Slipped Here", based on the raid's failure, and "Get your guns boys, they're robbing the bank!

Bob Younger's horse was killed and Frank James assassinated First National Bank acting cashier Joseph Lee Heywood.

Swedish immigrant Nicolaus Gustafson was shot in the head by Cole Younger and died of his injuries four days later.

The events have become the basis of an annual outdoor heritage festival called The Defeat of Jesse James Days.

Thousands of visitors witness reenactments of the robbery, which are staged on Division Street, outside of the First National Bank of Northfield.

Other activities during the festival include a championship rodeo, carnival, car show, and parade, as well as arts and crafts expositions, and musical performances.

Many food stations are set up in Bridge Square, and during the evenings live music is played in the Entertainment Center tent on Water Street.

[28][29] The Mill Towns State Trail was built in 1998 as a joint effort of the cities of Northfield and Dundas.

Northfield is also the site of one of the first roundabouts with grade-separated paths for bikes and pedestrians in the United States at the intersection of TH 246 and Jefferson Parkway.

Today, the freight-only Albert Lea Subdivision of the Union Pacific Railroad runs north–south through Northfield.