North Dakota average cropland values and cash rents haven’t changed much in 2020, says Bryon Parman, North Dakota State University Extension agricultural finance specialist.
“Despite the lower commodity prices of the last several years, the longer-term averages have been aided by low interest rates, farm programs and ad hoc payment programs designed to help farmers meet cash flow obligations,” Parman says.
Parman used data from the 2020 North Dakota Department of Trust Lands survey to determine that state average cash rents were down .5% in 2020, while land values were up slightly at 1.73%.
“However, when movements that small are put into context over time, it shows North Dakota cropland values and rents are not moving,” Parman notes.
For instance, from 2017 to 2018, rents statewide were down 4.6%, then from 2018 to 2019, they were up 3.6%, then down slightly again in 2020 by .5%.
Much of that movement likely is related to the average quality of the cropland rented or negotiated in any given year and survey measurement error.
Cash rents remained highest in the southern Red River Valley region, averaging nearly $127 per acre, while the southeastern and northern Red River Valley regions sit at $96.50 and $89.70, respectively.
These regions have the highest land values as well, with the southern Red River Valley at nearly $4,000 per acre, while the northern Red River Valley and southeastern regions are around $3,050 per acre.
The lowest rents for cropland occur in the northwestern and southwestern regions of North Dakota, with both regions near $37 per acre. They also have the lowest land value at $1,091 and $1,350, respectively.
Three regions — the north-central, northeastern and south-central — have rents between $52 and $56 per acre and values from approximately $1,750 to $1,850 per acre. The east-central region has a bit higher average rents and values than the previous three regions, with a 2020 cash rent of nearly $69 per acre and land value of approximately $2,080 per acre.Source: NDSU, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset.