SIOUX FALLS, S.D. (KELO AM) - Prices and demand for farmland continues to moderate in South Dakota with the value of cropland declining just over one percent and the value of pastureland rising over four percent.
Mark Jensen with Farm Credit Services of America says it’s all tied to profitability.
Jensen says the increase in pastureland values is the result of strong livestock prices. He says the overall decline in cropland values reflected lower grain prices compared to previous years. He says the lower grain prices and decreased margins will continue putting pressure on land prices, as well as cash rents.
Jensen says the value of benchmark farm values in South Dakota has risen over 261percent in the last decade.