""Conversely, it could be argued that the rent-to-land value ratio could return to more historic norms by rents rising, not land falling,"" Swenson says. What happened after 1981? Land plummeted 40 percent during a six-year period from 1981 through 1987. ""Land values are at record highs and the rent-to-land value ratio is currently at the low end at 6.1 percent, which occurred when land peaked in 1981."" ""Looking at historic data, one could make the argument either way about the future direction of land values,"" Swenson says. Swenson bases his calculations on surveys conducted in January by the North Dakota Agricultural Statistics Service. ""Cropland rents increased at a much lower rate than for farmland, but it was the first time since 1993 that rents increased by more than 4 percent." ""Although last year's increase indicates a very strong land market, it is the second consecutive year that values have not increased at an accelerating rate,"" says Andrew Swenson, North Dakota State University Extension Service farm and family resource management specialist. That beats the previous high of about $530 per acre in 1981. Land prices have been increasing roughly $50 per acre for the past four years, going from $460 per acre to more than $660. This follows increases of 10 percent during 2005 and 11 percent during 2004. The increase was 8 percent during 2006 (from January 2006 to January 2007). A recent survey indicates that North Dakota cropland values continue to push higher, but at a slower rate.
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