farm land value per acre in golden valley nd

Interest rates to finance land purchases are attractive, while returns and confidence on alternative investments have been weak. At the same time, prices soared due to a drought in the Corn Belt.Ī factor that has been just as important in driving land values has been low interest rates. Swenson believes 2012 was the apex in North Dakota crop production profit because stored soil moisture provided much better yields than expected. This combination has provided several years of strong profit for crop producers, which has fueled their financial ability and desire to buy land. For example, the three highest wheat yields ever have occurred within the past four years. Grain prices from 2007 to the present have been much higher than any year prior to 2007. The drivers that have pushed land values have been well-documented. “North Dakota cropland values are now the highest ever, even when adjusting for inflation.” “The question is whether this huge increase has capped a 10-year rise in land values, which has been the largest in the past 100 years, even exceeding what occurred from 1973 to 1981,” Swenson says.

The 42 percent increase is similar to the 46 percent increase reported by the North Dakota Chapter of the American Society of Farm Managers and Rural Appraisers. His estimate is derived from the published results of a January 2013 county-level survey commissioned by the North Dakota Department of Trust Lands. North Dakota cropland values increased by about 42 percent during 2012, according to Andrew Swenson, North Dakota State University Extension Service farm management specialist.

Farm land value per acre in golden valley nd