In 2014, the price per acre was $4,319, a 3.3 percent increase. In the South Red River Valley (Cass, Traill and Richland counties), the average price per acre was $3,083 in 2012, then rose to $4,180 in 2013, a 36 percent increase.But in January 2014, it dropped to $3,283, a 4 percent decline.Īll other regions of North Dakota saw increases in land values, the Trust Lands survey found. In the North Red River Valley region of North Dakota (Grand Forks, Walsh and Pembina counties), land values increased from $2,195 an acre in 2012 to $3,427 an acre in 2013, a 56 percent increase. There’s no way land values could continue to rise at 20, 30 percent every year,” Aakre said.
Still, it has tracked those estimates since 1989, he said.Īakre said the bullish land market in North Dakota is due for a break. The Trust Lands survey is not based on actual sales, but on observations by farmers and landowners around the state, said Dwight Aakre, an Extension farm management specialist. “It is quite possible that land values peaked in the last few months of 2013, when the financial impact of lower crop prices became more evident, especially in the Red River Valley, where two major crops, corn and sugar beets, had negative returns, on average,” Swenson said. Land values in the northern Red River Valley region actually dropped 4 percent from the year before, Swenson reported. But from January 2013 to January 2014, the red-hot land market cooled, as increases in land prices dropped to 8 percent.
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