10 Reasons Why Buying Land in South Dakota Makes Sense in 2026

South Dakota sits at the intersection of wide-open prairie, working farmland, and fast-changing opportunity. For buyers, it offers usable acres, strong property rights, and a lifestyle that still feels grounded. For investors, the recent data shows a market that continues to evolve—often with more momentum than many people expect.

Land values provide a clear snapshot of that momentum. In southeastern South Dakota, the average sale price per acre across 37 cropland-only sales in Q1 2025 reached $13,683 per acre, according to Stalcup Ag Service. Statewide, cropland-only sales averaged $14,155 per acre in 2024, also reported by Stalcup Ag Service. At the same time, a 2024 land value survey found that non-irrigated highly productive cropland across 19 southeastern counties averaged $11,165 per acre, according to South Dakota State University.

Below are 10 reasons buyers keep coming back to the Mount Rushmore State—and why South Dakota remains a serious contender for anyone looking to purchase land today.

1. Your dollar can buy meaningful acreage (and multiple strategies)

South Dakota gives buyers room to match acreage with goals: farming, grazing, recreation, future development, or a blended approach. Even as prices rise, buyers often find that parcels can support multiple use cases—income plus enjoyment—rather than forcing a single-purpose purchase.

2. Cropland demand is backed by real, recent sale benchmarks

If you want evidence that South Dakota land is actively trading—not just listed—the numbers are there. The average sale price per acre across 37 cropland-only sales in southeastern South Dakota in Q1 2025 was $13,683 per acre, according to Stalcup Ag Service. And statewide cropland-only sales averaged $14,155 per acre in 2024, per Stalcup Ag Service. These benchmarks help buyers underwrite offers, compare counties, and evaluate whether a given listing sits at, above, or below prevailing market activity.

3. Highly productive non-irrigated ground still anchors long-term value

South Dakota isn’t only about prime irrigated acres. Non-irrigated, highly productive cropland continues to carry weight in the state’s value story—especially across the southeastern corridor. In a 2024 survey, non-irrigated highly productive cropland in 19 southeastern counties averaged $11,165 per acre, according to South Dakota State University. For many buyers, that kind of category-level benchmark helps frame “what good looks like” when evaluating soil quality, yield potential, and price per acre.

4. Recent appreciation trends support a long-view purchase

Land buyers watch appreciation because it affects everything from equity growth to refinance options to eventual exit value. South Dakota cropland values improved 6.20% in the past 12 months as of 2025, according to AgWest Land. Looking ahead, South Dakota’s benchmark farmland value change entering 2026 is projected at +2.20%, according to Farm Credit Services of America. Buyers often value this kind of measured, data-backed growth—especially when they want to hold land through multiple market cycles.

5. Benchmark farm values provide another reality check

Beyond individual county or sale comps, benchmark portfolios help buyers contextualize statewide pricing. The average dollar value of all benchmark farms in FCSAmerica at the close of 2025 was $8,299 per acre, according to Farm Credit Services of America. This is useful when comparing different land classes, improvements, and productivity levels across a wide range of properties.

6. Pasture value momentum strengthens mixed-use and grazing plays

South Dakota isn’t just a cropland story. If your plan involves cattle, rotational grazing, or a mixed crop-and-livestock model, pasture trends matter. The Northern Plains region (including South Dakota) posted the highest increase in pasture value per acre at 7.6% in 2025, according to USDA NASS. That kind of regional movement can improve the outlook for buyers who want flexible ground that supports grazing and long-term land stewardship.

7. National comparisons show why buyers keep paying attention to the Plains

It helps to compare local land economics to the broader U.S. market. The U.S. average farm real estate value in 2025 reached $4,350 per acre, up 4.3% from the previous year, according to the American Farm Bureau Federation. Against that national benchmark, South Dakota’s recent per-acre figures for cropland-only sales underscore why the state draws both working operators and outside capital—especially buyers focused on productive acres and long-term scarcity.

8. Rental economics remain a key part of the underwriting conversation

If you plan to rent ground out, cash rent trends matter just as much as land prices. The U.S. average cash rent for cropland in 2025 was $161 per acre, up 0.6%, according to USDA NASS. While local rents vary significantly by county and productivity, national rent movement provides a helpful macro signal for income-focused buyers assessing lease demand and potential returns.

9. A tax environment and ownership culture that many buyers actively seek

South Dakota is widely known for a tax structure that appeals to people who want simpler personal finances and business planning. Pair that with a strong property-rights mindset, and you get a state where many buyers feel comfortable investing in improvements—whether that means building, fencing, adding access, or developing recreational infrastructure.

10. Lifestyle value: recreation, space, and a pace that feels sustainable

South Dakota land doesn’t only pencil out on spreadsheets. It delivers real lifestyle utility—hunting, fishing, hiking, cabin sites, and big-sky quiet—plus proximity to growing hubs like Sioux Falls and Rapid City. For many buyers, that combination turns land from a pure investment into a multi-generation asset that can be used now and held for the future.

Final Thoughts

South Dakota continues to earn attention because it offers usable land, multiple investment paths, and clear market signals. Recent benchmarks—like $13,683 per acre for Q1 2025 southeastern cropland-only sales from Stalcup Ag Service, $14,155 per acre statewide cropland-only averages in 2024 from Stalcup Ag Service, and the 6.20% cropland value improvement cited by AgWest Land—show a state that’s active, competitive, and still full of opportunity.

If you’re buying, do the work: verify access, water, soils, zoning, and local comps. If you’re on the other side of the transaction and looking to sell land in South Dakota, remember that vacant land sales can take time and typically require strong marketing to reach top-dollar buyers. Companies like Land Boss may be an option when speed and certainty matter more than maximizing price, since they buy land for cash and can simplify the process for sellers who need a quick exit.