Document Type

Article

Publication Date

6-1-1991

Keywords

Farm values, real estate, land values, farm rental

Abstract

South Dakota's agricultural land values increased 6.7% in 1990, paced by increases in grazing land values. Average agricultural land values (as of February 1, 1991) vary from $539 per acre in the southeast region, to $225 per acre in the central region to $89 per acre in northwest South Dakota. These are key findings from the SDSU 1991 South Dakota Farm Real Estate Market Survey reports. In each region, per acre values are highest for irrigated land, followed in descending order by non-irrigated cropland, hayland, tame pasture, and native rangeland. For each land use per acre land values are highest in the southeast region, followed by land values in the east central and northeast regions. For each land use the lowest average land values are found in western South Dakota. Average non-irrigated cropland values vary from $623 per acre in the southeast region, to $272 - $300 per acre in the central regions of the State, to $153 per acre in northwestern South Dakota. Average cropland values exceed $800 per acre in a few counties in southeast and east central South Dakota. Average rangeland values vary from about $270 per acre in the southeast and east central regions to about $70 per acre in western South Dakota. Substantial variation in land values exist for each land use within each region. For each land use, the average value of higher productivity land was 45% - 75% above the average value of lower productivity land and 15% - 30% above the reported average value of average quality land in the same region. Average cash rental rates per acre vary substantially by region and land use. For example, non-irrigated cropland cash rental rates vary from $61 - $64 per acre in a few counties of southeastern South Dakota, to $13.50 - $15.90 per acre in western South Dakota. Rangeland cash rental rates vary from about $20 per acre in southeastern and east central regions to $4.40 - $5.30 per acre in western South Dakota. Cash rental rates have been increasing in the past few years.

Comments

Economics Research Report 91-3

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