The average value of non-irrigated cropland in South Dakota is $6,268 per acre in 2026, according to the annual South Dakota State University Extension Farm Real Estate Survey. This is a 1.3% increase from $6,189 per acre in 2025, says Hoanh Le, SDSU Extension Economist who conducted the survey.
Following a period of strong growth since 2021, the South Dakota non-irrigated cropland market has stabilized since 2025, Le states.
Several regions report declines in non-irrigated cropland values between February 2025 and February 2026. This includes the North Central region (down 7.8%) and the Central region (down 1.5%). These declines were largely concentrated in counties with lower-productivity land within those regions, while counties with higher-productivity land continued saw price appreciation, Le observes. Regions with predominantly higher-productivity land saw modest increases, ranging from 3.7% in the Southeast to 5.8% in the Northeast region.
The survey pegs the statewide average cash rental rate for non-irrigated cropland at $160 per acre. This is a decrease of $6 from 2025’s rate. Note: Data for the South Central, Northwest and Southwest regions is limited; figures for those regions should be interpreted with caution.
Local farmers represent the largest share of buyers at 71.1% statewide. Some regions report as much as 90% to 100% of farmland is purchased by local farmers. New farmers account for 4.6% of purchases and non-local farmers 3.6%. Combined, local and non-local investors make up 20.1% of total farmland purchases.
Expanding current operations is by far the most common reason for buying farmland, mentioned by 91% of respondents. Long-term investment is the second most common reason at 55.2%, followed by cash availability at 22.4%. Note: Respondents could select more than one reason, so percentages do not add up to 100%.
The survey indicates nearly half of all farmland sales came from estate sales (47.4%). Retired farmers made up another 26.7%. Together, these two groups account for nearly three-quarters of all farmland sold in South Dakota. That is consistent with the most commonly cited reasons for selling found in previous surveys — retirement and estate settlement.
This highlights the important role generational transition plays in driving farmland sales across the state, Le states. When asked whether they noticed more or fewer farms listed for sale compared to the previous 12 months, nearly half of survey respondents (44.2%) said listing volume was about the same as the prior year, one in four (25.0%) noticed fewer farms for sale, about one in five (23.1%) saw more. The remaining 7.7% were unsure.
Respondents note several factors negatively affect the cropland market, including low grain prices, persistently high interest rates and elevated input costs. On the positive side, factors supporting land values include limited land supply, opportunities to expand existing operations and good crop yields. High cattle prices were also mentioned as a key driver of farmland values, particularly for pastureland.
Respondents were asked to predict land values one and five years from now. Long-term expectations remain optimistic: 72.6% anticipate an increase in cropland values over the next five years, with 35.6% expecting a 5% to 10% rise and 26.7% expecting an increase greater than 10%. Sentiment is similarly positive for pastureland, where 74.2% of respondents expect values to increase over the same period -- more than 63% anticipate a gain of more than 5%.
Short-term expectations, however, are more cautious, Le notes — at least for cropland. Nearly half of respondents (45.2%) expect non-irrigated cropland values to hold steady over the next year, while 25.8% anticipate a decline. Pastureland shows a different picture: 69.4% of respondents expect pasture values to rise in the near term, 27.4% expect them to remain stable, only 1.6% foresee a decrease.