Land-Buying Mistakes to Avoid in South Dakota in 2026

South Dakota still delivers the big-sky appeal—prairies, Black Hills views, and productive ag ground—but today’s land market rewards disciplined buyers. Prices have climbed, inventory has tightened, and the gap between “average” values and top-tier local sales can be dramatic. If you want to buy land here without expensive surprises, avoid the mistakes below.

Know the market you’re buying into (and don’t rely on outdated comps)

Many buyers anchor to last year’s price and miss how quickly South Dakota values can move—sometimes statewide, sometimes hyper-locally.

• Statewide farm real estate averaged $2,780 per acre in 2024, up 5.7% from 2023, according to the USDA.
• In 2025, South Dakota farm real estate averaged $2,970 per acre, up 6.8% from 2024, per the USDA.
• Also in 2025, South Dakota cropland averaged $4,610 per acre (up 6% from 2024) and pastureland averaged $1,340 per acre (up 5.5% from 2024), according to the USDA.

Those headline numbers matter—but they don’t replace local, property-specific pricing. In some areas, sale prices can exceed statewide averages by a wide margin.

• The average sale price per acre of 37 cropland-only sales in southeastern South Dakota in Q1 2025 was $13,683 per acre, according to Stalcup Ag Service.
• Across South Dakota, the average $/acre on cropland-only sales was $14,155 in 2024, down 1% from $14,280 in 2023, per Stalcup Ag Service.

Mistake to avoid: Treating “average” values as a reliable offer price for a specific parcel. Use multiple comp sources, confirm soil and water attributes, and validate whether the tract competes with premium local sales.

Zoning and land-use restrictions: Don’t buy a dream you can’t legally build

Zoning is where good intentions go to die. If you assume you can add a home site, split parcels later, run a business, or change use “eventually,” you can end up owning land that can’t support your plan.

• Verify zoning and future land-use maps with the county or city planning office.
• Confirm building eligibility, setbacks, driveway/approach permits, and any minimum-acre rules.
• Ask about road projects, utility corridors, or planned development that could change the character (and value) of the property.

Water access, water rights, and water quality: Don’t assume a well solves everything

Water can be the make-or-break issue for homes, livestock, and crops. South Dakota’s rules and practical constraints vary by location, and “there’s a creek” doesn’t guarantee usable, lawful, or sufficient supply.

• Confirm whether existing wells are permitted and whether new wells are feasible in that area.
• Review any recorded easements or agreements tied to pipelines, rural water, or shared access.
• Test water quality before you plan irrigation, livestock operations, or aquaculture.

Weather and natural risk: Don’t ignore flood, wind, and drought realities

South Dakota’s climate can swing fast. A property that looks perfect on a calm day can become costly if it sits in a flood-prone area, lacks wind protection, or depends on fragile moisture conditions.

• Check FEMA flood maps, local history, and drainage patterns—especially for bottom ground and river-adjacent tracts.
• Evaluate wind exposure for structures, shelterbelts, and snow drifting.
• Consider drought resilience: water access, soil type, and realistic yield potential.

Soil and productivity: Don’t skip the “under-the-surface” due diligence

Soil quality drives ag returns and resale value. Treat soil testing and productivity review like an inspection, not an optional add-on.

• Order soil tests and review soil maps to match the land to your intended use.
• Investigate past uses that could leave contamination or compaction issues; consider environmental assessments when warranted.

If you’re pricing non-irrigated cropland, use credible benchmarks and understand what they represent.

• South Dakota’s statewide average non-irrigated cropland value was $6,189 per acre in 2025, up 1.1% from $6,119 per acre in 2024, according to South Dakota State University Extension.

Access, utilities, and “country costs”: Don’t underestimate your true all-in price

Remote can be wonderful—until you start paying for it. Access and infrastructure often determine whether a “good deal” stays a good deal.

• Legal access: Confirm deeded access and recorded easements. Don’t rely on handshake agreements.
• Road maintenance: Understand who maintains the road and what happens in winter or heavy rain.
• Utilities: Price out electric, fiber, septic, well, and driveway/culvert costs before you close.
• Taxes and assessments: Validate the current classification and potential changes that could raise taxes.

Supply is tightening: Don’t assume you can “just find another one” next month

In a market with fewer offerings, buyers can feel pressured to waive due diligence. That’s how bad purchases happen.

• The volume of acres offered for sale at auction in South Dakota decreased by 14.5% in 2024 compared to 2023, according to Stalcup Ag Service.

Mistake to avoid: Letting scarcity rush your decision. Move quickly on research—not blindly on offers.

Think long-term: Don’t ignore trend signals heading into 2026

Land is a long game. Even when prices cool in one segment, broader value trends can keep pressure on buyers and influence refinancing, leasing, and resale strategies.

• South Dakota benchmark farmland values increased 2.20% in the most recent period entering 2026, according to Farm Credit Services of America.

Mistake to avoid: Buying without a plan for multiple futures—renting it out, improving it, holding through cycles, or selling to a different buyer type later.

Final thoughts

Buying land in South Dakota can be an outstanding move—if you treat it like a professional acquisition. Respect zoning, verify water, evaluate climate risk, test soil, and price in access and utilities. Then validate your offer with current market data and local sales reality. When you combine disciplined due diligence with patience, you give your land purchase the best chance to pay off for years to come.