Land Price Bubble Popping? - KXNet.com - Bismarck/Minot/Williston/Dickinson-KXNEWS,ND

Land Price Bubble Popping?

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Many landowners are cashing out.

Alan Butts with Pifer's Auction and Realty has been selling farm and ranch real estate for the past 12 years.
Butts says in the past 10 years the number of land sales for their business have increased, with 20-30 happening each year in western North Dakota.
He says an acre of good cropland in the Bismarck/Mandan area will bring 1,500 to 3,000 dollars, while pasture is worth 750-1,500 dollars.

(Alan Butts / Pifer's Auction and Realty) "Cropland is probably flattening out. Because of the strong prices in cattle, record cattle prices we are seeing pasture land selling well and it's steady, maybe even a little higher than it was a year ago."

Butts says even if land values do level off, prices are still at historic highs.

(Alan Butts / Pifer's Auction and Realty) "In the cropland prices, the 4 dollar corn is flattening out. But even if we level off at the level that we are, we have gone up 200-250% in a 6-7 year period. If you would have told a room of land owners 10 years ago that we would be looking at these prices today they would have laughed you right out of the room. "

Butts expects land values to hold steady into 2014.
He says most of the pasture and cropland being sold is being bought by producers rather than outside interest groups, such as hunters.

 

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