By Shannon Sand
According to the 2018 SDSU Farm Real Estate Market Survey, statewide change in average cash rental rates per-acre from 2017 to 2018 was positive for cropland, increasing on average by $3 per acre; and unchanged for pasture/rangeland.
The 2018 SDSU Farm Real Estate Market Survey is the 28th annual survey of agricultural land values and cash rental rates by land use and quality in different regions of South Dakota.
The results of the survey are reported below and a discussion of factors influencing buyer/seller decisions and positive/negative factors impacting farmland markets.
The publication of the survey findings was in response to numerous requests by farmland owners, renters, appraisers, lenders, buyers and others for detailed information on South Dakota farmland markets.
Respondents to the 2018 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 (Figure1).
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 agricultural land values are primarily related to major differences in:
1. Agricultural land productivity among regions;
2. Per-acre values of cropland and pasture/rangeland in each region; and
3. The proportion of cropland and pasture in each region.
Survey findings
Statewide, an estimated 47 percent of privately owned farmland acres are cropland or hayland. Fifty-three percent 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 of the state. While statewide pasture/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.
Of note: This report contains an overview land values and cash rental rates for regions/ county clusters and is not specific to any property. Readers should use this report as a general reference and rely on local sources for specific details.