The value of South Dakota agricultural land increased 26.8% in 2011, according to the most recent South Dakota State University Farm Real Estate Market Survey. That percentage increase is the highest annual rate of increase in the past 22 years of the survey, survey authors Dr. Larry Janssen and Dr. Burton Pflueger said.
From 2000 to 2011, statewide annual increases in all-agricultural land values varied from 5.1% to 22.5%. with two years of annual increases exceeding 20%. Overall, agricultural land values in South Dakota have more than doubled since 2007 and have increased nearly five-fold from 2000. From 1991 to 2000, annual increases in all-ag land values varied from 4% to 9%.
Cropland values rose at a higher rate than other ag land classes, the survey says. Cropland values increased by 29.1% compared to increases of 27.1% for hay land and 20.5% for rangeland and pasture. Cropland and hay land values increased in all regions, while rangeland and pasture increased in most regions. The strongest increases in land values occurred in the southeast, central and north regions while the northwest and southwest regions saw the lowest percentage changes.
According to the survey, the average value of an acre of South Dakota agricultural land reached $1,742 an acre in 2012. The statewide average value of an acre of dryland cropland reached $3,084 an acre, an acre of rangeland averaged $737 an acre, an acre of improved pasture averaged $1,218 an acre and an acre of hay land averaged $1,758 an acre.
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