August 09, 2013 – By Larry Janssen, SDSU Professor; Burton Pflueger, SDSU Extension Specialist/Professor; Bronc McMurtry, Student Research Assistant
South Dakota’s agricultural land values continued to boom during the past two years for all land uses and regions. The most recent two years of annual increases for all agricultural land values, 33.6% from 2012 to 2013 and 26.8% from 2011 to 2012, are the highest annual rates of increase in the past 23 years of this survey. Overall, agricultural land values have nearly doubled since 2009 and increased six-fold since 2001!
The average value of all agricultural land (as of February 2013) in South Dakota was $2,328 per acre, varying from an average of $5,504 in the east-central region to $536 in the northwest region. These are key findings from the 2013 South Dakota Farm Real Estate Market Survey completed by 215 agricultural lenders, Farm Service Agency officials, rural appraisers, assessors, realtors, professional farm managers, and Extension field specialists.
This was the twenty-third annual SDSU survey designed to estimate agricultural land values and cash rental rates by type of land in different regions of the State. The information provides an overview of current findings across South Dakota. Readers should use this information as a general reference and rely on local sources for more specific details.
Respondents provided county land value and cash rental rate information by agricultural land use. Responses, grouped by region with average values for all classes of land, are provided in figure 1. Separate estimates of land value and cash rental rate information for nonirrigated cropland, hayland, rangeland, and tame pasture are provided in figures 2, 3, and 4.
Average Land Value Summary
The all-land average values are highest in the three eastern regions with per acre values ranging from $5,504 in the east-central region to $4,954 in the southeast region and $3,684 in the northeast region. In the central and western regions, per acre all-land values vary from $3,217 in the north-central to $536 in the northwest region. In six regions, agricultural land values increased more than 30% from the previous year (figure 1).
Agricultural land values are generally highest in the east central region, followed by the southeast region. Cropland and hayland are the dominant land uses in these regions, which contain the most productive land in South Dakota. The lowest average land values are found in the northwest and southwest regions, where rangeland is the predominant land use.
In each region, per acre values are highest for irrigated land, followed in descending order by nonirrigated cropland, hayland or tame pasture, and native rangeland. Within each region, there is substantial variation in per acre land values by use and land productivity (figures 2 and 3).
Nonirrigated cropland values in South Dakota averaged $4,249 per acre in 2013, a 37.8% increase from one year earlier. Average values of nonirrigated cropland vary from $6,828 in the east-central to $3,580 in the central region and $792 per acre in the northwest region (figure 2).
South Dakota hayland values averaged $2,285 per acre in 2013, a 30% increase from one year earlier. Average values of hayland vary from $4,196 in the southeast to $610 per acre in the northwest.
In 2013, the value of South Dakota native rangeland averaged $909 per acre, a 23.3% increase from one year earlier. The average value of tame pasture was $1,542 per acre, a 26.6% increase. Native rangeland is concentrated in the western and south-central regions of South Dakota, while tame pasture is concentrated in the central and eastern regions.
Average rangeland values are highest in the east-central and southeast regions ($2,765 and $2,308 per acre, respectively) and lowest in the southwest and northwest regions ($529 and $444 per acre, respectively). In other regions average rangeland values vary from $1,759 in the northeast region to $994 per acre in the south central region.
Tame pasture values in each region were higher, but followed a similar pattern with average values varying from $3,176 in the east-central region to $523 per acre in the northwest region.
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