2017 Farm Real Estate Market Survey Findings
The 2017 SDSU Farm Real Estate Market Survey is the 27th annual survey of agricultural land values and cash rental rates by land use and quality in different Regions of South Dakota. Reported are results of the survey and a discussion of factors influencing buyer/seller decisions and positive/negative factors impacting farmland markets.
Average Cropland Value
According to the 2017 SDSU Farm Real Estate Market Survey average cropland value for the state is $3,903, down 4.7% from 2016. Cropland values saw continued pressure due to low margins for cropland production. Pasture land was steady to slightly down with a decrease of 0.6% and with state average value of $1,215.
Cash Rental Rates
The statewide change in average cash rental rates per-acre from 2016 to 2017 was negative for cropland and positive for pasture/rangeland (-$5.00 for cropland and +$3.00 for pasture). Average cropland cash rental rates increased in the Southcentral Region with all other Regions decreasing.
Respondents to the 2017 South Dakota Farm Real Estate Market Survey estimated the per-acre value of non-irrigated cropland and pastureland in their county. Responses for non-irrigated land uses are grouped into eight agricultural Regions. The six Regions in Eastern and Central South Dakota correspond with USDA Agricultural Statistics Districts. In Western South Dakota, farmland values and cash rental rates are reported for the Northwest and Southwest Regions. Land values and cash rental rates are reported only for privately owned land and should not be considered as estimated values for tribal lands or federal lands.
Regional differences in all-agricultural land values are primarily related to major differences in: 1) agricultural land productivity among Regions, 2) per-acre values of cropland and pasture/range in each region, and 3) the proportion of cropland and pasture in each region. More than 80% of farmland acreage in each region is cropland or pasture/range.
Statewide, an estimated 47% of privately owned farmland acres are cropland or hayland and 53% is rangeland or tame pasture. In summary, statewide cropland values are greatly influenced by values estimated in the North-Central and the three Eastern Regions, while statewide rangeland values are heavily influenced by values reported in Regions West of the Missouri River.
The reduced number of responses in the three Regions West of the Missouri River (South-Central, Southwest and Northwest) continues to make it difficult to provide land value and cash rental rate estimates in these Regions.* Additional iGrow articles will be forthcoming and will further break down, rental rates, land values, returns to land and regional differences throughout the state.
*In 2016, there were no land market reports from three counties located in western and South-central South Dakota. These counties are Todd, Mellette, and Ziebach counties.
For more information, view the complete publication or contact an SDSU Extension expert:
- Jack Davis, Crops Business Management Field Specialist
- Heather Gessner, Livestock Business Management Field Specialist
- Shannon Sand, Livestock Business Management Field Specialist
Disclaimer: The information in this article is believed to be reliable and correct. However, no guarantee or warranty is provided for its accuracy or completeness. This information is provided exclusively for educational purposes and any action or inaction or decisions made as the result of reading this material is solely the responsibility of readers. The author(s) and South Dakota State University disclaim any responsibility for loss associated with the use of this information.