By Scout Nelson
Pastureland values and rental rates in North Dakota continued their steady climb into 2025. For the fifth consecutive year, values and rents rose according to North Dakota State University Extension data.
From 2024 to 2025, pastureland values increased by 8.9%, moving from $1,355 to $1,473 per acre. Rental rates also rose by 7.5%, with average rents growing from $23 to $25 per acre statewide.
Survey data from the North Dakota Department of Trust Lands shows this consistent rise, though changes varied across different NDSU Extension regions. Notably, the southwest region saw the highest value increase at 13.9%, while the southeast had the smallest at 5.4%. Other regions reported increases between 8.2% and 8.9%.
Rental rate growth showed more variation. The southeast region experienced a rental hike of over 16%, while the southwest had the lowest increase at under 1%. The east central and northwest regions saw increases of 8.2% and 9.7%, respectively, with more moderate rises in the north central and south-central regions.
Statewide, pastureland values have risen by 51.5% since 2021, whereas rental rates are up by only 18.6%. Despite this, rental returns have dropped to just 1.7% of market value, a significant decline from 6% thirty years ago.
“With 2024 and 2025 experiencing a multi-decade low in cattle inventories, the demand pressure from ranchers to push pasture rental rates upwards hasn’t been there despite record-high cattle prices,” says Parman. “It can take years for beef cattle inventories to adjust to market prices, and therefore, high prices in the cattle markets are likely seen in land prices well before they would have an impact on rental rates.”
North Dakota’s pastureland market reflects broader trends where land values continue to soar, but rental rates lag, creating new challenges and opportunities for the agricultural community.
Photo Credit:gettyimages-jacqueline-nix
Categories: North Dakota, General, Livestock, Dairy Cattle