By Shannon Sand
2016 Agricultural Land Values
From 1991 to 2015, agricultural land values in South Dakota, and in most other major agricultural production states, appreciated each year. In 2016 on average all agricultural use land decreased in South Dakota except rangeland, which will be discussed in a future article. This is the first annual decline in the average value of agricultural ground compared to yearly increases of 1.4 to 33.6 percent during 2011-2015 (Table 1). This indicates a change from the previous cycle of increases in agricultural land values.
Table 1. Average reported value and annual percentage change in value of South Dakota agricultural land by region, February 2011-2016.
SE E. Cent. NE N. Cent. Cent. S. Cent. SW NW STATE Year
Avg. Value (Dollars per acre)2016 4752 5069 3661 3182 3080 1584 827 836 2444 2015 4995 5186 3940 3226 3035 1634 964 737 2505 2014 5385 5763 3962 3319 2931 1461 620 512 2470 2013 4954 5504 3684 3217 2678 1294 606 536 2328 2012 4014 3890 2587 2325 2257 917 461 369 1742 2011 2900 3332 2274 1720 1450 781 459 342 1374
Annual % change 16/15 -4.9% -2.3% -7.1% -1.4% 1.5% -3.1% -14.2% 13.4% -2.4% *All Ag Land (nonirrigated)
- See more at: http://igrow.org/agronomy/profit-tips/ag-land-values-decrease-statewide-on-average/#sthash.IQ6vje5A.dpuf | SE | E. Cent. | NE | N. Cent. | Cent. | S. Cent. | SW | NW | STATE |
Year | Avg. Value (Dollars per acre) |
2016 | 4752 | 5069 | 3661 | 3182 | 3080 | 1584 | 827 | 836 | 2444 |
2015 | 4995 | 5186 | 3940 | 3226 | 3035 | 1634 | 964 | 737 | 2505 |
2014 | 5385 | 5763 | 3962 | 3319 | 2931 | 1461 | 620 | 512 | 2470 |
2013 | 4954 | 5504 | 3684 | 3217 | 2678 | 1294 | 606 | 536 | 2328 |
2012 | 4014 | 3890 | 2587 | 2325 | 2257 | 917 | 461 | 369 | 1742 |
2011 | 2900 | 3332 | 2274 | 1720 | 1450 | 781 | 459 | 342 | 1374 |
Annual % change |
16/15 | -4.9% | -2.3% | -7.1% | -1.4% | 1.5% | -3.1% | -14.2% | 13.4% | -2.4% |
*All Ag Land (nonirrigated) Agricultural Land Demand The amount of land devoted to production agriculture in South Dakota is fixed and has changed little during the last 26-years. Figure 1 shows that regionally, the change in value varied from a 13.4 percent increase in the Northwest, to a 14.2 percent decrease in the Southwest. Many factors influence the demand for agricultural land in states such as South Dakota, such as interest rates, price expectations, and demand for commodities just to name a few. |
Figure 1. Percent change in value by South Dakota agricultural land by region 2016-2015.
Looking Forward
There have been sharp declines in crop prices and returns in the past year. The drop in commodity prices from 2014 to 2016 may be a reason all South Dakota agricultural land values on average decreased 2.4% compared to a year ago (Table 1).
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