Southwest ND sees highest land value increase in state
The North Dakota farm land market showed signs of cooling off in some places, but not in southwest North Dakota, according to the North Dakota State University Extension Service.
The state’s largest increase in cropland values from 2013 to 2014 was in the southwestern region, where increased about 28 percent to $1,278 an acre. The average rent increased about 7 percent to $38.50 an acre.
Both are the second-lowest values, on average, in the state. The northwestern region was the lowest, reporting an average of $950 an acre, an increase of about 10 percent, with a slight decline in rental prices, at about $34.70 an acre.
“The survey indicated that land rents, as typical, did not change as much in percentage as land values,” said Andrew Swenson, NDSU Extension Service farm management specialist. “On average, cropland rents increased about 4 percent (January 2013 to January 2014).”
By comparison, land values in the Red River Valley declined 4 percent to $3,283 an acre after a 56 percent increase the previous year, though rent there increased 8 percent to an average of $124.20 an acre. Negative returns on corn and sugar beets impacted land prices in the Red River Valley, according to Swenson.