10-year return on land is 242%
The North Dakota Chapter of the American Society of Farm Managers and Rural Appraisers has released its 13th annual survey of North Dakota and northwest Minnesota farmland values and rents.
Approximately 25 farm managers and rural appraisers provided information on sales, rental rates and appraisals for the survey.
Farmland returns rose 7% statewide over last year according to the data collected, says Charles Peterson, vice president of farm asset management at U.S. Bank, Fargo. N.D. Returns rose 11% in counties on the state’s western border, 15% in the Red River Valley and 29% in the central area of North Dakota.
Land values declined an average of 1% statewide. But they increased 5% in the Red River Valley and 1% in western North Dakota from 2008 to 2009. Values declined 2% in the middle section of North Dakota. In comparison, Iowa farmland values declined 2% from 2008 to 2009.
The 10-year return on North Dakota land is impressive — 242% statewide and 246% in the Red River Valley, Peterson reports.
“Buying farmland anywhere in North Dakota or the Red River Valley was a prudent investment,” Peterson says.
This article published in the April, 2010 edition of DAKOTA FARMER.