Non-irrigated hay land values increased slightly in South Dakota in 2014, according a farm real estate survey conducted by ag economists at South Dakota State University (SDSU).
The 2014 average value of non-irrigated hay land in the state was $2,458/acre, up from 2013’s average of $2,285/acre.
The $173/acre land value improvement amounted to a 7.6% increase over last year’s total. The rate of increase was slower than the previous three years’ increase — a 30% rise in 2013, 28% in 2012 and 15% in 2011.
The SDSU survey results, released June 2, also provided a picture of varying land values based on the productivity of hay land in different parts of the state.
According to the report, the average 2014 per-acre values in the southeastern region varied from a high of $5,961 for high-productivity hay land to $3,353 for low-productivity hay land.
Highly productive hay land in the south-central region averaged $2,063/acre; low-productivity hay land, $1,240/acre. In the southwest, high-productivity hay land values averaged $963/acre while low-productivity land averaged $537/acre.
In the northeast, highly productive land went for $3,281/acre; low-productivity land averaged $1,575/acre. The north-central region reported an average of $3,354/acre for highly productive land and $1,718/acre for land with low productivity. In the northwest, high-productivity hay land came in at $767/acre and low-productivity land was $438/acre in 2014.
In the east-central region, highly productive hay land averaged $5,756/acre; low-productivity hay land, $3,389/acre. In the central part of South Dakota, high-productivity hay land averaged $3,344/acre for 2014; low-productivity land averaged $1,870/acre.
South Dakota's hay land values vary greatly depending upon which side of the Missouri River land is on, the report indicates. Values east of the river are higher; those to the west are significantly lower.
According to the report, the three-year boom in South Dakota’s ag-land values may be over as commodity prices moderate.
The report, entitled "South Dakota Agricultural Land Market Trends 1991–2014," was authored by Larry Janssen, Kim Dillivan and Bronc McMurtry with the SDSU Agriculture Experiment Station.