South Dakota non-irrigated agricultural land (cropland, rangeland, pasture, and hay land) values increased marginally in 2014 according to results from a farm real estate survey conducted by agricultural economists at South Dakota State University. The non-irrigated agricultural land average value in the state was $2,470 per-acre; an increase of $142 per-acre or 6.1% from last year (Figure 1). This percentage increase was smaller than increases reported from each of the past three years. For example, annual increases of 33.6, 26.8, and 16.5% were reported in 2013, 2012, and 2011, respectively. The percentage increase in values for 2014 was similar to the 5.2% increase reported in 2010. Figure 1 shows South Dakota non-irrigated agricultural land average values for 2009-2014.

Value of South Dakota Agricultural Land by Region

This iGrow report is second in a series of reports on agricultural land market conditions in South Dakota. Future reports will focus on cropland cash rental rates, and rangeland, pasture, and hay land values and cash rental rates. A previous iGrow report focused on South Dakota all-agricultural land values.

South Dakota non-irrigated cropland values increased marginally in 2014 according to results from a farm real estate survey conducted by agricultural economists at South Dakota State University. The 2014 average value of non-irrigated cropland in the state was $4,478 per-acre; an increase of $229 per-acre or 5.4% from last year (Figure 1). This percentage increase was smaller than increases reported in the three previous years. For example, annual increases of 37.8, 29.1, and 17.7% were reported in 2013, 2012, and 2011, respectively. The percentage increase in average values for 2014 was also smaller than the 6.8% increase reported in 2010. Figure 1 shows cropland average values for 2009-2014.

Cash rental rates for South Dakota non-irrigated cropland increased marginally in 2014 according to results from a farm real estate survey conducted by agricultural economists at South Dakota State University. The 2014 average cash rental rate for South Dakota non-irrigated cropland was $150.10 per-acre; an increase of $5.80 per-acre or 4.0% from last year (Figure 1). This percentage increase was smaller than increases reported in the past three years. For example, annual increases of 18.8, 22.8, and 14.1% were reported in 2013, 2012, and 2011, respectively. The percentage increase in average cash rents for 2014 was slightly larger than the 3.3% increase reported in 2010. Figure 1 shows cropland average cash rental rates for 2009-2014.

Increasing Cash Rents of South Dakota Cropland

South Dakota non-irrigated hay land values increased modestly in 2014 according to results from a farm real estate survey conducted by agricultural economists at South Dakota State University. The 2014 average value of non-irrigated hay land in the state was $2,458 per-acre; an increase of $173 per-acre or 7.6% from last year. This percentage increase was smaller than increases reported in the three previous years. For example, annual increases of 30.0, 27.7, and 15.2% were reported in 2013, 2012, and 2011, respectively. The percentage increase in average values for 2014 was larger than the 4.6% increase reported in 2010. Figure 1 shows South Dakota hay land average values for 2009-2014.

Increasing Values of South Dakota Hay Land

Cash rental rates for South Dakota non-irrigated hay land continued to appreciate in 2014 according to results from a farm real estate survey conducted by agricultural economists at South Dakota State University. The 2014 average cash rental rate for South Dakota non-irrigated hay land was $84.40 per-acre; an increase of $5.10 per-acre or 6.4% from last year (Figure 1). This percentage increase was smaller than reported increases from the past three years. For example, annual increases of 20.4, 15.3, and 10.9% were reported in 2013, 2012, and 2011, respectively.

Increasing Cash Rents of South Dakota Hay Land

South Dakota non-irrigated rangeland and pasture per-acre values continued to increase in 2014 according to results from a farm real estate survey conducted by agricultural economists at South Dakota State University. Rangeland average values increased 8.6% from last year while pasture average values increased 3.9%. For both rangeland and pasture these percentage increases were smaller than increases reported in the three previous years. For rangeland, annual increases of 23.3, 20.6, and 13.1% were reported in 2013, 2012, and 2011, respectively. For pasture, annual increases of 26.6, 20.5, and 18.4% were reported in 2013, 2012, and 2011, respectively.

In South Dakota, slightly more than 50% of privately owned agricultural land is rangeland or pasture. Native rangeland is heavily concentrated in western and central regions of South Dakota, while tame pasture is not concentrated in any particular region or regions. For purposes of this survey, rangeland (also called native rangeland) was defined as land actively managed for grazing and comprised predominately of native grasses. Whereas pasture (also called tame or improved pasture) was defined as land managed for grazing but comprised predominately of introduced grasses and/or legumes.

South Dakota non-irrigated rangeland and pasture per-acre values continued to increase in 2014 according to results from a farm real estate survey conducted by agricultural economists at South Dakota State University. Rangeland average values increased 8.6% from last year while pasture average values increased 3.9%. For both rangeland and pasture these percentage increases were smaller than increases reported in the three previous years. For rangeland, annual increases of 23.3, 20.6, and 13.1% were reported in 2013, 2012, and 2011, respectively. For pasture, annual increases of 26.6, 20.5, and 18.4% were reported in 2013, 2012, and 2011, respectively.

In South Dakota, slightly more than 50% of privately owned agricultural land is rangeland or pasture. Native rangeland is heavily concentrated in western and central regions of South Dakota, while tame pasture is not concentrated in any particular region or regions. For purposes of this survey, rangeland (also called native rangeland) was defined as land actively managed for grazing and comprised predominately of native grasses. Whereas pasture (also called tame or improved pasture) was defined as land managed for grazing but comprised predominately of introduced grasses and/or legumes.

Cash rental rates for South Dakota non-irrigated pasture/rangeland continued to appreciate in 2014 according to results from a farm real estate survey conducted by agricultural economists at South Dakota State University. The 2014 average cash rental rate for South Dakota non-irrigated pasture/rangeland was $28.40 per-acre; an increase of $1.75 per-acre or 6.6% from last year. This percentage increase was smaller than reported increases from the past three years. For example, annual increases of 17.9, 9.2, and 11.3% were reported in 2013, 2012, and 2011, respectively.

In South Dakota, slightly more than 50% of privately owned agricultural land is rangeland or pasture. Native rangeland is heavily concentrated in western and central regions of South Dakota, while tame pasture is not concentrated in any particular region or regions. For purposes of this survey, rangeland (also called native rangeland) was defined as land actively managed for grazing and comprised predominately of native grasses. Whereas pasture (also called tame or improved pasture) was defined as land managed for grazing but comprised predominately of introduced grasses and/or legumes.

According to results from a farm real estate survey conducted by agricultural economists at South Dakota State University, cash rates-of-return for all uses of agricultural land in the state declined slightly during the 1990’s and declined substantially from 2001 to present. The gross rate-of-return (cash rent as a percent of land value) is used to estimate current rates-of-return to agricultural land.

It is calculated from respondents’ reported average cash rental rates and their estimated average values of leased land. As a gross measure rather than net, this ratio estimates rates-of-return obtained by landlords, before deduction of property taxes and other landlord expenses.