Average cropland and pasture values increased in all regions of South Dakota between 1991 and 2024. During this time, the statewide average annual increase for cropland is 8.80% in nominal term or 6.03% after adjusted for inflation. This growth rate varies from 6.6% in the Southwest region to 9.5% in the North Central region. The statewide average annual increase for pasture is 8.39% in nominal term or 5.68% after adjusted for inflation. The growth rate for pasture varies from 7.9% in the South Central region to 8.95% in the Central region. Southwest and Northwest regions have the lowest land values and cash rental rates. In contrast, the East Central and Southeast regions have the highest land values and cash rental rates. During the 34-year period of the surveys, the ranking of regions in land values or cash rental rates did not change much except for the regions with the highest and lowest values.
Cropland Values and Rental Rates
In 1991, the Northwest region had the lowest cropland values and had an average of $153 per acre. In the meantime, the Southeast region had the highest cropland values and had an average of $623 per acre. In the latest 2024 survey, the Southwest region had the lowest cropland values and had an average of $1,513. The East Central region had the highest cropland values at an average of $9,306 (Figure 1). Statewide, cropland values increased from $384 per acre in 1991 to $6,119 per acre in 2024. The rankings of regions in rental rates for cropland are consistent with rankings in cropland values. In 1991, the Northwest region had the lowest rental rates and had an average of $14 per acre. The Southeast region had the highest rental rates and had an average of $46 per acre. In the 2024 survey, the rental rates were lowest for the Southwest region, which had an average of $43 per acre. In contrast, the East Central region had the highest rental rate and had an average of $240 per acre in 2024 (Figure 2).
Pasture/Rangeland Values and Rental Rates
In 1991, the values of pasture/rangeland were the lowest for the Northwest and Southwest regions, which had an average of less than $75 per acre. The East Central and Southeast regions had the highest values of pasture/rangeland and had an average of roughly $270 per acre. In 2024, the average pasture/rangeland values have increased to $890 per acre for the Northwest region and $1,080 for the Southwest region. Average pasture/rangeland values were $3,803 per acre for the Southeast region and $3,727 per acre for the East Central region in 2024. Average cash rental rates vary from $20 to $88 per acre across regions in 2024 (Figure 3 and Figure 4). Statewide, pasture/rangeland values increased from $112 per acre in 1991 to $1,599 per acre in 2024.
Summary
In summary, average land values and cash rental rates are highest in the Southeast and East central regions; in the meantime, these are lowest in the Northwest and Southwest regions. Cropland values are higher than pasture/rangeland values in all years and all regions. For more information on this topic see the complete South Dakota Agricultural Land Market Trends publication.
References
- Davis, Jack B and Hoanh Le, 2024. South Dakota Agricultural Land Market Trends, 1991-2024: Results from the 2024 SDSU Extension South Dakota Farm Real Estate Survey. South Dakota State University
- Janssen, Larry, Kim Dillivan, and Bronc McMurtry. 2014. “South Dakota agricultural land market trends, 1991–2014.” SDSU Ag Expt. Station Circular 03-7000-2014. Brookings.
