An acre of North Dakota cropland rose 16% in 2008, states Andrew Swenson, North Dakota State University Extension Service farm management specialist. Based on a survey conducted by the North Dakota Agricultural Statistics Service, Swenson says an average acre of North Dakota cropland was about $925 by the end of 2008 versus a year earlier.
The largest percentage increase in cropland values was in the east-central region at more than 30%. Values rose to an average of $961 an acre. That was followed by a gain of 18% in the southeastern region at $1,362 an acre. The smallest percentage gains, ranging from 5% to 8% were found in the northwest, southwest and south-central regions.
While acknowledging the strong gain for 2008, Swenson believes land values will flatten in 2009 due to much dimmer crop profitability prospects than seen in 2009. However, he says it is too early to predict land values will decline.
I cover more details of the North Dakota survey in the April 24 issue of LandOwner newsletter. If interested in seeing a copy, just drop me an email at firstname.lastname@example.org or call me at 800-772-0023.