Higdon beat off competition from Leigh Griffiths of Hibernian, Andrew Shinnie of Inverness and Aberdeen's Niall McGinn to lift the trophy at an awards dinner in Glasgow on Sunday evening.
The striker has scored 26 league goals for the Steelmen this season, helping them to second place in the SPL table and beating Willie Pettigrew's post-war goalscoring record for the club.
Griffiths won the young player of the year gong, thanks to the 27 goals he has netted so far this term.
Queen of the South boss Allan Johnston, meanwhile, was named manager of the year.
Johnston, whose side won the Second Division and the Ramsdens Cup, beat off the challenge of Inverness boss Terry Butcher, Motherwell's Stuart McCall and Celtic manager Neil Lennon to land the coveted accolade.
He said: "It is unbelievable. I was delighted to be nominated but to win it is a thrill.
"When you look at the other guys, Neil Lennon and his exploits in the Champions League, it is amazing.
"Terry Butcher and Stuart McCall have had fantastic seasons as well so even to be mentioned along with these guys, I was honoured."