I found this on http://www.prairieghosts.com/loon.html

My hometown (Worthington) is not too far away. I'm very curious and kind of want to go find the place...but of course, not alone...but is it really worth it?

"Located a distance south of Lakefield, Minnesota, and a short ways from the highway between Jackson and Petersburg, lies an abandoned and forgotten graveyard called the Loon Lake Cemetery. For many years, this place has been reportedly haunted by a variety of ghosts and legends that have appeared since the last burial here in 1926. The ghosts that haunt this place are not your average spirits either. They are strange and they are many, leading many to believe that the place has more than its share.

There is no longer a road that journeys back to Loon Lake Cemetery but those who seek the place can still find it, despite swampy and treacherous ground. The only ones who still come here today are ghost hunters and curiosity-seekers, and the occasional researcher who is searching for some family history.

The cemetery is said to be haunted by the spirits of three witches who were buried there many years ago. It is said that anyone who violates their resting places will die an unnatural death. One of these three witches has been remembered as "Mary Jane", who supposedly had supernatural powers and allegedly died in 1881, when the townspeople of Petersburg cut off her head. It is also claimed that if one walks over the grave of this woman, that person will also die.

How many of these stories are true? No one really knows, but the place certainly seems conducive to a haunting in its abandoned and remote setting. At least 67 tombstones once stood in Loon Lake Cemetery, but today it is said that only about 18 remain. Do the fallen ones remain as victims to a witch's curse or the work of vandals?

The abandoned Loon Lake Cemetery lies in Jackson County, in the southwest portion of the state, just north of the Iowa border. The cemetery is south of Lakefield and west of Petersburg in a remote location."

that sounds like an intersting place to venture i wonder how much of it is true

Not sure if it's true or not, but I've heard all sorts of stories growing up in Southwest Minnesota. Lot of strange things around that area. I want to see this cemetary but I don't think I would actually go into the cemetary....

You can find the cemetery on the Lake's southeast shore. Turn into "Brown's Campgrounds" they have signs directing you to it's sight. It's open during the day only!

Now this one I have to wonder about. I think that ghost hunters have to be a bit like anthropologists and be wary of local legend here. Maybe there are ghosts there - that's a possiblity....... like it is anywhere. But you have to wonder if it's not so hyped up because people go out there looking for something...... and it's out in the woods and it's dark and it's overgrown etc..... and they hear noises etc and are ultimately a little too open to suggestion that there is something there when it's more the scenery and their active imaginations getting to them?

If anything - average ghosts without the ability to jeapordize your life. It would be fun to go though. I for one would like to check it out to set things straight - either yay or nay and nobody in the investigating party was killed. Do they have any records in that town of someone being decapitated? I find that hard to believe.