North Dakota cropland values increased by 42 percent during 2012.
That’s according to Andrew Swenson, North Dakota State University Extension Service farm management specialist. His estimate is derived from the published results of a January 2013 county- level survey commissioned by the North Dakota Department of Trust Lands.
The 42 percent increase is similar to the 46 percent increase reported by the North Dakota Chapter of the American Society of Farm Managers and Rural Appraisers.
Swenson cautions that the factors driving the tremendous increase in prices—what he calls “the perfect storm” of high crop prices and yields and low interest rates—will not continue indefinitely. However, he says he does not expect an immediate sharp drop in land values, even if crop prices, yields and/or interest rates turn somewhat less favorable.