March 13, 2019
Lincoln, Neb. — Nebraska agricultural land values declined by 3 percent over the last year, according to preliminary results from the University of Nebraska–Lincoln Farm Real Estate Market Survey. The statewide average of land values is $2,650 per acre. Values have dropped nearly 20 percent since peaking at $3,315 in 2014.
Survey respondents indicated trade and property-tax policies were two of the largest factors contributing to the decline in land values.
Grazing land experienced the greatest decline in values, at 4 percent, led by steep drops in the central district of the state. While statewide values declined for all types of land, a small number of areas saw an increase. Most notable was the 6-percent increase in hayland values in the eastern district of Nebraska.
With a few exceptions, rental rates were also down, led by a 10-percent drop in center-pivot-irrigated cropland in the north district.
The Farm Real Estate Market Survey is an annual survey of land professionals including appraisers, farm and ranch managers, and agricultural bankers. Results from the survey are divided by land class and agricultural statistic districts. Land values and rental rates presented in the report are averages of survey participants' responses by district. Actual land values and rental rates may vary depending upon the quality of the parcel and local market. Preliminary land values and rental rates are subject to change as additional surveys are returned.
The preliminary report was released in the Department of Agricultural Economics’ weekly Cornhusker Economics newsletter and is available at https://agecon.unl.edu/realestate. Final results from the survey are expected to be published in early June.
Agricultural Systems Economist
This article originally appeared on IANRnews.unl.edu: