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Farmland Values Soar In North Dakota In 2012; Both Farmers And Investors Are Buying
Farmland Values Soar In North Dakota In 2012; Both Farmers And Investors Are Buying

Originally Appeared On : "therepublic.com"

February 12,2013

Farmland values in North Dakota in 2012 jumped 46 percent on average over the year, with demand from both farmers and investors, a new report concludes.

The report from the North Dakota Chapter of the American Society of Farm Managers and Rural Appraisers, which takes into account the observations of professionals and documented sales, concludes that the increase in values from 2011 ranged from 31 percent in the southwest part of the state to 53 percent in the northwest, according to Agweek (http://bit.ly/12aZimt ).

Land values doubled from 2009 to 2012 in nearly all regions of the state.

Charles Peterson, a vice president with US Bank in Fargo and a society board member, said more investors are looking to buy land because they hope land values and rental rate returns will beat other investments that are not keeping up with inflation.

"They have more money sitting in CDs (certificates-of-deposit) paying less than 1 percent (annual interest)," he said. "If you can pick up some land and get a return of 4 or 5 percent or more, including the appreciation, that's a smart thing to do."

North Dakota State University Extension Service farm management specialist Andy Swenson also said farmers have had six good years of profitability, and are enjoying strong crop prices at the same time as low interest rates.

"Their ability to pay (for land) is there," Swenson said. "There is a lot of cash out there."
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Buying and selling of agricultural land can be very complex.  To help you tackle the issues surrounding agricultural land transactions, Farms.com Real Estate has compiled a list of experts in the areas of agricultural economics and land values. 

University of Illinois

Department of Agricultural and Consumer Economics, Extension Specialist, Farm Management
Gary Schnitkey
schnitke@uiuc.edu

Department of Agricultural and Consumer Economics, Extension Specialist, Farm Management
Dale Lattz
d-lattz@uiuc.edu

Iowa State University

Michael Duffy
mduffy@iastate.edu
http://www.econ.iastate.edu/faculty/duffy/landnew.html

Kansas State University

Kevin Dhuyvetter
Professor and Extension Specialist, Farm Management
kcd@ksu.edu

Terry Kastens
Professor and Extension Specialist, Farm Management
tkastens@agecon.ksu.edu

Michigan State University

Stephen Harsh
Professor and Extension Specialist in Agricultural Economics
harsh@msu.edu

Eric Wittenberg
Outreach Specialist
wittenbe@msu.edu

University of Minnesota

Philip Raup
Professor Emeritus
praup@umn.edu

David Bau
Agricultural Business Management, Agricultural Business Management
bauxx003@umn.edu

 

 

 

 

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