nd-all-reports NEWS RELEASE Land Values and Cash Rents August 5, 2005 LAND VALUES AND CASH RENTS North Dakota The 2005 North Dakota average land values and cash rents rose sharply from last year, according to the USDA, National Agricultural Statistics Service, North Dakota Field Office. Farmland real estate was valued at $500 per acre, an increase of 9.9 percent from 2004 and 17.6 percent higher than 2003. This is the sixth consecutive year of farmland real estate value increases. The average value of cropland was $546 per acre, up 11.4 percent from 2004 and 18.7 percent from 2003. Pasture values increased 13.5 percent from 2004 to $210, 23.5 percent more than 2003. Average cash rent for cropland in North Dakota was $39.00 per acre in 2005. This was 4.0 percent higher than 2004 and 6.8 percent higher than 2003. Cash rent for pasture in 2005 averaged $10.60 per acre, up from $10.20 in 2004 and $9.80 in 2003. United States Farm real estate values, a measurement of the value of all land and buildings on farms, averaged $1,510 per acre on January 1, 2005, up 11.0 percent from 2004. This is the largest percentage increase since 1981, when farm real estate values rose 11.1 percent from the previous year. Cropland and pasture values rose by 11.3 and 9.5 percent, respectively, from January 1, 2004. Cropland values averaged $1,970 per acre and pasture values averaged $694 per acre on January 1, 2005, compared with $1,770 and $634 per acre, respectively, a year earlier. The increase in farm real estate values was driven by a combination of factors, including low interest rates, high commodity production and prices, and strong demand for nonagricultural land uses. Cash rents per acre paid to landlords for cropland rose 2.0 percent while pasture rents increased 7.3 percent for the 2005 crop and grazing year. Cropland cash rents paid in 2005 averaged $78.00 per acre, compared with $76.50 per acre for 2004. Pasture cash rents averaged $10.30 per acre, 70 cents higher than the $9.60 per acre in 2004. The increases in cropland and pasture rental rates continue to reflect producers' optimism following the combination of high production and price levels of major U.S. agricultural commodities in 2004. Farm Real Estate, Cropland and Pasture Average Value per Acre, Selected States, 2004-2005 Farm Real Estate Cropland Change Change Region 2004 2005 2004-2005 2004 2005 2004-2005 - Dollars - - Pct - - Dollars - - Pct - Lake States: 2,220 2,480 11.7 2,030 2,220 9.4 Michigan 2,920 3,150 7.9 2,550 2,750 7.8 Minnesota 1,800 2,030 12.8 1,690 1,850 9.5 Wisconsin 2,500 2,850 14.0 2,350 2,600 10.6 Corn Belt: 2,300 2,550 10.9 2,450 2,750 12.2 Illinois 2,610 2,900 11.1 2,700 3,030 12.2 Indiana 2,770 3,050 10.1 2,750 3,080 12.0 Iowa 2,200 2,490 13.2 2,320 2,650 14.2 Missouri 1,580 1,740 10.1 1,690 1,890 11.8 Ohio 2,930 3,180 8.5 2,940 3,230 9.9 Northern Plains: 632 704 11.4 783 880 12.4 Kansas 715 800 11.9 705 800 13.5 Nebraska 825 910 10.3 1,290 1,430 10.9 North Dakota 455 500 9.9 490 546 11.4 South Dakota 500 570 14.0 747 847 13.4 Mountain: 550 599 8.9 1,200 1,260 5.0 Arizona 1/ 1,600 1,750 9.4 6,400 6,790 6.1 Colorado 775 845 9.0 1,060 1,110 4.7 Idaho 1,360 1,480 8.8 1,710 1,840 7.6 Montana 410 445 8.5 548 586 6.9 Nevada 1/ 500 550 10.0 1,950 2,070 6.2 New Mexico 1/ 265 290 9.4 1,450 1,450 0.0 Utah 1/ 1,150 1,230 7.0 2,900 2,900 0.0 Wyoming 315 350 11.1 972 1,010 3.9 48 States 2/ 1,360 1,510 11.0 1,770 1,970 11.3 1/ Excludes Native American Reservation Land. 2/ Excludes Alaska and Hawaii. Farm Real Estate, Cropland and Pasture Average Value per Acre, Selected States, 2004-2005 Pasture Change Region 2004 2005 2004-2005 - - Dollars - - - Pct - Lake States: 1,050 1,200 14.3 Michigan 1,800 1,950 8.3 Minnesota 700 810 15.7 Wisconsin 1,200 1,400 16.7 Corn Belt: 1,200 1,330 10.8 Illinois 1,110 1,240 11.7 Indiana 1,780 1,900 6.7 Iowa 880 1,000 13.6 Missouri 1,130 1,260 11.5 Ohio 2,100 2,240 6.7 Northern Plains: 279 325 16.5 Kansas 430 500 16.3 Nebraska 275 310 12.7 North Dakota 185 210 13.5 South Dakota 240 290 20.8 Mountain: 302 346 14.6 Arizona 1/ 500 600 20.0 Colorado 470 555 18.1 Idaho 725 805 11.0 Montana 285 320 12.3 Nevada 1/ 260 295 13.5 New Mexico 1/ 170 195 14.7 Utah 1/ 520 630 21.2 Wyoming 235 270 14.9 48 States 2/ 634 694 9.5 1/ Excludes Native American Reservation Land. 2/ Excludes Alaska and Hawaii. Cropland and Pasture Rented for Cash, by Selected States, 2004-2005 Cropland Pasture Region 2004 2005 2004 2005 (Dollars per Acre) (Dollars per Acre) Lake States: 76.20 78.00 24.50 26.90 Michigan 62.00 62.00 --- --- Minnesota 83.50 86.50 19.50 20.50 Wisconsin 70.00 70.00 37.00 38.00 Corn Belt: 114.00 117.00 29.00 30.50 Illinois 126.00 129.00 34.00 34.50 Indiana 107.00 109.00 --- --- Iowa 126.00 131.00 32.50 36.00 Missouri --- --- 26.00 27.00 Non-Irrigated 76.00 79.00 --- --- Ohio 80.00 82.00 --- --- Northern Plains: 50.00 53.00 11.80 12.00 Kansas 41.00 42.00 13.20 13.40 Irrigated 72.00 73.00 --- --- Non-Irrigated 37.50 38.50 --- --- Nebraska 95.00 97.00 12.00 12.00 Irrigated 125.00 127.00 --- --- Non-Irrigated 70.00 71.00 --- --- North Dakota 37.50 39.00 10.20 10.60 South Dakota --- --- 11.60 12.30 Non-Irrigated 47.50 50.40 --- --- Mountain: 62.50 62.00 3.60 3.80 Arizona --- --- --- --- Irrigated 150.00 165.00 --- --- Colorado 58.00 61.00 3.70 4.30 Irrigated 91.00 100.00 --- --- Non-Irrigated 22.00 23.00 --- --- Idaho 99.00 104.00 --- --- Irrigated 118.00 124.00 --- --- Non-Irrigated 53.00 55.00 --- --- Montana 24.50 25.00 5.00 5.90 Irrigated 49.00 53.00 --- --- Non-Irrigated 18.90 19.50 --- --- New Mexico --- --- 1.70 1.80 Utah --- --- 10.00 9.00 Irrigated 61.00 65.00 Wyoming --- --- 4.00 4.00 48 States 1/ 76.50 78.00 9.60 10.30 1/ Excludes Alaska and Hawaii. FOR MORE INFORMATION CONTACT: David Knopf, Director USDA, NASS, North Dakota Field Office NDSU, IACC Bldg., Room 448 P.O. Box 3166 Fargo, ND 58108-3166 Telephone: (701) 239-5306 E-Mail: nass-nd@nass.usda.gov Internet: http://www.nass.usda.gov/nd/