|Meade County grassland auction brings big bucks
|photo courtesy of SDSU Extension.|
Office of School & Public Lands-Auctions
Jerry Oster - April 17, 2017
UNDATED - Every spring the South Dakota Office of School & Public Lands holds an auction for grazing rights to hundreds of thousands of acres of grasslands. Many times, the lease price for that land will range from ten to twenty dollars an acre.
As Commissioner Ryan Brunner says, an auction in Meade County jumped those prices quickly.
"There were a couple of folks who wanted a 240-acre piece of land pretty bad, and the bidding started and just kept going until it went from $6.00 an acre to $227 an acre."
Brunner says that two hundred forty acres will bring the state a good return for the next few years.
"Just over $54,000 a year in annual rent for a five year lease. After that, then there will be an option year where they will get a break on their rent. They will probably looking forward to after paying that higher rental rate."
Brunner says they had a surprisingly strong auction.
"You know, across the state, we've seen cattle prices still low, we've seen people looking for a lot of grass in different areas. So we are seeing some aggressive action because they are short on grass."
The interest on the rental returns goes to the state’s school districts.