NDSU Extension - Mercer County

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Comparison of Land Value and Rental Rates

County Rents and Prices, land value, rental rates

Submitted by Craig Askim, Extension Agent/Agriculture and Natural Resources

The 2019 County Rents and Prices report has just been released. This publication is very popular to landowners and renters. I will give highlights on a statewide level and do some comparisons from the March 2018 to March 2019 figures on a county level. The County Rents and Prices report is conducted and funded annually by the North Dakota Department of Trust Lands.

Overall, North Dakota cropland value increased by about 2% from 2018, which differs from a United States Department of Agriculture survey report released in June of 2018, which showed a flat rate. The increase is reflected from the result of record spring wheat yields, very strong corn and soybean yields, and federal aid to producers in the form of market facilitation payments to offset tariffs in the Chinese markets.

In North Dakota, the cropland values per acre from January 2018 to January 2019 were the strongest in the east-central region with a 13.5 % increase. In the southwestern regions, (which Mercer County is a part of) the cropland value decreased by 2 percent. From $1,610 in 2018 to $1,346 in 2019.

In Mercer County, the five year average rental rate for non-irrigated cropland decreased by 2% from $40.40 per acre in 2018 to $39.60 in 2019. However, the rate increased by 16.5% from $32.90 in 2018 to $38.30 in 2019. The five-year average of non-irrigated cropland value increased by 8.7% from $1,208 to $1,313. The difference in non-irrigated cropland value from 2018 to 2019 is 9.6% from $1,261 in 2018 to currently $1,383 per acre.

Pasture land five year average rental rate increased by 2.35% from $16.90 to $17.30 per acre. An increase of 7.1 % was reported from 2018 to 2019, with the average of $16.90 reported in 2018 to $18.10 presently. The five-year average value of pastureland increased by 13.5% from $797 to $932. Pastureland value dropped a whopping 27.2% from 2018 to 2019. From a value of $1,133 in 2018 to $889 in 2019.

The five-year hay land rental rates was unchanged at $22.60 per acre. However, the rental rate difference from 2018 to 2019 increased by 20% from $22.50 in 2018 to $27.10 in 2019. The five-year average value of hay land increased by 12.3% from $898 to $1,008. The difference from 2018 to 2019 in hay land value was a decrease of 1.4 % from a value of $1,172 in 2018 to a current value of $1,155 per acre.

The percentages and comparisons were used by comparing the 2018 to 2019 reported amounts. Please remember the accuracy of the percentage changes are solely based on the figures listed and the amount of the number of surveys listed in the report published by the North Dakota Department of Trust Lands, which is different from year to year.

Overall, land rental rates and values are remaining strong except pastureland values across the county. The full report listing all North Dakota county figures can be accessed by going to http://land.nd.gov/.  If you have any questions, please feel free to call me at 701.873.5195.

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