SDSU Farmland Survey Turns 35

By Scout Nelson

The SDSU Extension Farm Real Estate Market Survey reaches its 35th year as a trusted source of farmland value and rental rate information in South Dakota. The survey begins in 1991 when Professor Emeritus Larry Janssen and Extension economist Burton Pflueger starts their own study after a key land sales database becomes unavailable.

First, they plan to test the project for only three years. However, the strong response from farmers and industry professionals encourages them to continue. Over time, the survey becomes a reliable annual report that shows farmland values and cash rental rates by land use, land quality, and region across the state.

The survey does not set exact prices for specific land. Instead, it provides regional estimates and shows long-term trends. Jack Davis, retired SDSU Extension Crops Business Management Specialist, explains the value of this method. “That’s where a lot of its strength is. It’s over time, not identifying the value of your property at this date. It can get you a start,” Jack Davis says.

One special feature of the survey is its use of key informants. These are people who work closely with farmland sales, such as lenders, appraisers, realtors, and loan officers. These experts share detailed market knowledge, which helps keep the data balanced and reliable. “We are an independent party, and we’re working with independent parties that have a good knowledge of the land values and trends,” Davis adds.

The survey also groups South Dakota’s 66 counties into eight regions based on land use and value. Each region is further divided into county clusters. Informants give estimates for high, medium, and low productivity of land. These results are shared through charts and reports.

Larry Janssen also uses the survey as a teaching tool. He trains students to conduct research and understand land markets. After his retirement in 2015, Davis manages the survey until 2024. The survey then moves fully to digital format.

Today, Hoanh Le continues to work. She updates the survey each year, gathers data, and shares results with farmers and industry leaders. “I talk about the survey everywhere I go,” Le says. “Many people say thanks for continuing to do this.”

If you are interested in participating in the SDSU Extension Farm Real Estate Market Survey, contact ThiYenHoanh.Le@sdstate.edu View the 35th annual survey online.

Photo Credit: istock-alenamozhjer