North Dakota Farmland Rental Price Survey Exhibits State-Broad Variation

That is the case in North Dakota, in keeping with a brand new 2021 report funded by the North Dakota Division of Land Trusts. Some agricultural producers and landowners use the annual report as an unbiased third-party supply to assist decide the worth producers pay to lease non-irrigated cropland, non-irrigated pasture, and non-irrigated “tame” hayland. Tame hay land refers to land that has been planted with grass or cultivated legumes, particularly alfalfa.

Bryon Parman, North Dakota State College EXfinance specialist, rigidity ag, mentioned the survey outcomes matched his expectations. Though 2020 authorities funds and the rise in crop costs on the finish of final 12 months have helped the monetary outcomes of farmers and ranchers, just one 12 months of comparatively good monetary returns – after a number of years of poor monetary returns – was not sufficient to set off change throughout the nation. The rental fee for boards is growing, he mentioned.

He really helpful not studying an excessive amount of into the survey outcomes, particularly in counties the place the outcomes have been based mostly on comparatively few reviews. The ends in a county with solely a handful of reviews may have been unduly influenced if the land concerned was of sub-par high quality or if it concerned an older relative promoting or renting land to a youthful relative at a decreased worth, did he declare.

“One 12 months is simply not lengthy sufficient to determine a pattern,” particularly in counties the place the survey outcomes have been based mostly on a small pattern, he mentioned. “Analyzing rental charges over the previous three or 5 years supplies a bigger pattern and usually a extra correct evaluation.”

The report was based mostly on a survey this winter through which greater than 1,900 farmers and ranchers participated. It offered county-by-county averages, however not statewide averages. Counties’ outcomes different extensively, reflecting components akin to native climate circumstances and native competitors to lease land.

For instance, the typical rental fee for non-irrigated cropland in Cass County, the state’s most populous county and usually the nation’s chief in soybean manufacturing, rose to $ 130.40 an acre in 2021, up from $ 126.30 per acre the 12 months earlier than.

In distinction, the typical rental fee for non-irrigated cropland in Sioux County in western North Dakota, an space the place drought is a rising concern this spring, fell to $ 31.40 an acre. in 2021, up from $ 36.70 per acre final 12 months.

An identical pattern – with some charges roughly the identical, some rising, others falling – is true for rain-fed pastures and tame non-irrigated haylands, in keeping with the survey.

As is all the time the case, rental charges have been usually highest within the japanese third of the state, lowering within the center third of the state and falling extra within the western third. This displays the local weather and soil, that are usually essentially the most favorable for agriculture in japanese North Dakota, however transfer much less westward.

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