Mikkel Pates, Published February 09 2014
Index: Increase in ND land prices slowed in 2013FARGO – An annual index of farmland values increased 17 percent in North Dakota in 2013, according to an annual report by a state land appraisers group.
That’s a healthy increase but only “moderate” compared with a 39 percent increase index the previous year, according to the state chapter of the American Society of Farm Managers and Rural Appraisers. The index had increased 32 percent and 45 percent in the previous two years.
“The Red River Valley indicates the lowest change at an 11 percent increase, while the northeast counties indicate the largest increase at 24 percent higher than 2012 prices,” the report says.
This year’s report is different from past years. The previous reports have also included Minnesota figures in the Red River Valley, which have dropped this year, according to a group spokesman. The report title – Agricultural Land Price and Cash Rent Survey – has changed to drop the word land “value” because the report is simply a price index from actual sale data.
Land price ranges
- Red River Valley – The index indicates cropland prices were up 11 percent, after annual jumps of 42 and 7 percent in the previous two years, respectively. The highest land price was $9,304 per acre in Pembina County, with an average of $5,627.
- Northeast – Prices were up 24 percent, after annual increases of 32 and 16 percent in the previous two years. The highest price was $7,100 in Foster County, where the average was also the highest at $5,099 per acre.
- Southeast – Prices increased 17 percent after annual increases of 37 and 23 percent in the two previous years. This is everything south and east of Burleigh and Emmons counties, to the western half of counties in the southern Red River Valley. Cropland prices hit a high of $7,600 in Dickey County, with an average of $5,149.
- Northwest/central – Cropland prices were up 18 percent in 2013, after annual jumps of 45 and 23 percent in the previous two years. This is a big area, from Rolette and Sheridan counties and west to McKenzie and Divide counties. It posted a high of $7,163 per acre for cropland in McLean County with 25 reported sales and an average of $3,275 per acre.
- Southwest – Reported sale prices increased 21 percent, after annual increases of 35 and 31 percent the previous two years. These are counties west of the Missouri River and south from Dunn and Golden Valley counties. In that region, Morton County posted the top nonirrigated cropland price per acre at $3,310, but an average of $2,299.
The highest pastureland prices were $1,650 per acre in Morton County, with an average of $1,269 per acre.
Terry Longtin, a member of Farmer’s National Co. in Grand Forks says buyers in North Dakota “continue to seek out average to high-quality land for purchase. The number of land sales remains fairly steady, while land prices have leveled slightly as compared to last year at this time. Although demand remains fairly strong, there are pockets of decline from the highs a year ago.”