Farmland values continue steady decline

In the Northern Plains, a diverse region comprised of high quality, tillable farmland, grassland and recreational property, land values for high quality land continued to decline by $400 per acre average in North Dakota from June 2015 to June 2016, by $100 per acre average in South Dakota and by $900 average by acre in Minnesota.

Untitled-2
“Land values continue to slide off their peak in North Dakota,” said Brian Mohr, area sales manager for Farmers National Company in Garretson, S.D. “In the majority of the Red River Valley, prices range between $4,000-$5,000 per acre for high quality land. This would be down 15 to 20 percent from 2014-2015.On marginal land outside the area, we are seeing steeper declines of 20 to 35 percent depending on how bad the flaws are on the land. Prices range between $1,500 -$2,500 for poorer quality land.”
Land values for top quality land in the southeast portion of South Dakota has remained stable from 2015 until now. Even recent auctions for land in this state have shown a slight increase.
“Well attended public auctions are the norm with prices up to $10,000 per acre,” Mohr said. “As you move west, the prices drop significantly once you get past the Missouri River pheasant belt.”
The central portion of western Minnesota sees land values down from their high point, but interest remains strong and top quality land has sold well at auction, Mohr said.
“A recent sale of 2,000 acres set values at more than $4,100,” Mohr said. “Land sales in southern Minnesota range between $5,000 and $8,000, down slightly from last year.”