Mobridge Reminder, August 31, 2020
Read the full article from the All About Ag insert of the August 31, 2020 issue of the Mobridge Reminder here, or click on this link:
https://www.mobridgetribune.com/pageview/viewer/2020-08-30#page=1
What have land values been doing? This is one of the most frequently asked questions that I get from people. The answer can depend on what kind of land you’re referring to, as in cropland or pastureland, or where you are. SDSU Extension conducts a survey each year in an attempt to understand just that – what are land values doing in South Dakota?
It’s important to keep in mind survey results aren’t going to tell you exactly what your land is worth, as there are many variables that can affect value for a particular piece of property. But the surveys can be useful in identifying trends over time, as shown in the charts below.
You’ll notice that cropland values peaked in South Dakota about 2014, and have adjusted down somewhat since then. However, they remain well above values from a decade ago.
It is interesting to see that while average cropland values in the state have decreased slightly since the peak in 2014, pastureland values have remained rather steady for the past five or six years.
What can we expect land values to do heading into the fall? Only time will tell for sure, but the outlook is good. Interest rates remain low and there has been abundant feed produced again this year. High quality land will likely continue to bring a strong price. We may see some increased investor interest as city folks look outward for places to be and to invest in. South Dakota has drawn some national attention in the last several months and for many people is seen as a desirable place to be. Land is a tangible asset that can be seen and touched, and has a solid track record of positive returns over time. It will continue to be a desirable addition to an operation or investment portfolio.
If you would like to visit about values for your specific property, give me a call. I can be reached at 701-934-2732 or [email protected].
Kristen Gill, Gill Land Company
