With rates increasing 3.1%, we need only go back to the period from 2018 to 2019 to find a comparable increase where during that period, statewide average rates increased 3.61%, he adds. Statewide cropland rental rates were reluctant to increase at the same rate as values. “We have to go back to 2014, where land prices increased 8.5%, to find an increase as high as that shown from 2021 to 2022.” “The highest increase in land values statewide from 2015 to 2021 was only 1.74% with 2015, 2016, 20 all showing small declines in statewide average land values,” Parman adds. In fact, from 2015 though 2021, rents and values across North Dakota had mostly remained flat, or even declined to some degree, when inflation adjustments were made to the yearly reported rates, says Parman. The 2021 survey conducted by the North Dakota Department of Trust Lands shows rents had increased only 0.77% from 2020 to 2021 and land values were up 1.74% during the same time period. However, the statewide cash rental rate increase was much lower at approximately 3.1%, says Bryon Parman, North Dakota State University Extension agricultural finance specialist. Sustained high commodity prices have pushed cropland prices higher across North Dakota, increasing 10.9% from 2021 to 2022.
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