Document Type

Article

Publication Date

6-15-1992

Keywords

farmland, land markets, agricultural economics, real estate

Abstract

South Dakota's agricultural land values increased 3.4% in 1991, paced by strong increases in farmland values in the north central region. Farmland values declined slightly (-1.1%) in the southeast region, the only region with reported declines. Average agricultural land values (as of February 1, 1992) vary from $533 per acre in the southeast region, to $225 per acre in the central region to $95 per acre in northwest South Dakota. These are key findings from the SDSU 1992 South Dakota Farm Real Estate Market Survey reports. 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. 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. The lowest average land values, for each agricultural land use, are found in western South Dakota. Average nonirrigated cropland values vary from $616 per acre in the southeast region, to $287 - $342 per acre in the central regions of the State, to $167 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 $74 - $80 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 50% - 90% above the average value of lower productivity land and 12% - 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, nonirrigated cropland cash rental rates vary from $63 - $65 per acre in a few counties of southeastern South Dakota, to $15.10 - $17.70 per acre in western South Dakota. Rangeland cash rental rates vary from about $19.60 per acre in the east central region to $4.90 - $5.30 per acre in western South Dakota. From 1991 to 1992, cash rental rates increased more than 10% for nonirrigated cropland in western South Dakota and for rangeland in northwestern region of South Dakota. In most other regions, cropland and rangeland rental rates per acre did not change very much. Hayland cash rental rates declined in most regions, reflecting lower hay prices. Irrigated land rental rates increased an average $6 - $10 per acre in western, central and northeast regions of South Dakota.

Comments

Economics Research Report No. 92-1

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