b'North Dakota Cropland Values Up Double Digits Again in 2023Despitehighproductioncoststothe northern Red River Valley whichsouth-centralandsoutheastern start2022,netfarmincomesincreased6%.Thenorthwesternregions were both up between 8.7% remainedhighhelpingfacilitatearegion tends to fluctuate a bit moreand9.7%.Thenorth-centraland sharpriseinlandpricesfor2023,due to a lower number of observa- northernRedRiverValleyregions saysBryonParman,NorthDakotations, showed the only decline at - wereupbetween5.6%and6.8% StateUniversity(NDSU)Extension0.84%.while the northwestern, northeast-agricultural finance specialist.ern and southern Red River Valley Overall,thestatewideaverageregions were all up slightly less than Thestatewideaveragelandpricecroplandvaluemovinginto20235%. increasefrom2022to2023waswas $2,863 per acre, says Parman. 13.46%,whichishigherthanlastThemostexpensivefarmlandinThesmallestincreaseincropland years increase of 10.9%. Rents wereNorth Dakota remains in the south- rentoccurredinthesouthwestern alsoupconsiderably,rising6.82%ernRedRiverValleyregionatanregionwithanincreaseof3.25%. statewide,markingthelargestaverage of $5,494 per acre while theThe statewide average cash rent on increase in 10 years.leastcostlyisinthenorthwesterncropland was $79.90 per acre. region at $1,399 per acre. The data for the rental rate and landOverall,2023marksthesecond valuechangescomesfromtheOver the last five years, the south- largestincreaseinlandpricesin North Dakota Department of Trusteastern region cropland values haveNorthDakotainarow,says LandsCountyRentsandPricessurpassedthenorthernRedRiverParman.However,despitethe AnnualSurveyfoundonlineatValley, with the southeastern regionincreaseinrentsaccompanying https://www.land.nd.gov/resources/ increasing faster. In the most recentlandpriceincreases,thedisparity north-dakota-county-rents-prices- survey,thesoutheasternregionalbetween cash rents and land prices annual-survey.Thedataisthenlandvalueswere$3,886peracrecontinues to grow wider. The capi-combinedintoNDSUExtensionwhile the northern Red River Valleytalizationrates(caprate)with regionsusingaweightedaveragevalues were $3,605 per acre.respect to farmland in North Dakota basedonthenumberofcountyhas been declining for decades. acres.Theeast-centralregionwasalso over$3,000peracreforthefirstParmancontinues,Thecaprate, The largest increase in land valuestime,cominginat$3,029.Thewhichisthecashrentdividedby occurredintheeast-centralandotherthreeregionsincludingthethemarketvalueoffarmland,in southernRedRiverValleyregionsnorth-central,northeasternandNorthDakotain2023isaround with both increasing over 20%. Thesouth-centralallcameinbetween2.65%.In2012,thecaprateon north-centralandnortheastern$2,100 per acre and just over $2,300cropland was closer to 3.8%, and in regions saw the next largest increaseperacre.Thesouthwesternregionthe1990scapratesweremostly at 15.5% and 14.1%, respectively. came in just above the northwest- between 6% and 9%. The simple cap ern region at $1,653 per acre.rate reflects the income generated, The south-central and southeasternrelativetothevalueoflandnot regionsincreasedbetween11.5%Cropland rents were up across theaccounting for capital gains and at and13.5%forthetworegions.boardwiththelargestincrease2.65%, is the lowest it has been in Smallerincreasesoccurredintheoccurring in the east-central regionmore than 40 years. southwesternregionat9.4%andat11.88%,saysParman.The 22 POTATO GROWER MAY/JUNE 2023'