Nebraska Farm Land Values Rise by 5%: What It Means for Our Local Agricultural Community

The University of Nebraska–Lincoln's 2024 Nebraska Farm Real Estate Market Survey preliminary report shows a 5% rise in Nebraska's agricultural land value from the previous year. The average value is now $4,015 per acre. This is the third year of increases. The report is issued annually by the university’s Department of Agricultural Economics and Center for Agricultural Profitability. It is based on a survey of land industry experts in Nebraska.

The increase in Nebraska’s agricultural real estate values is due to factors like farm expansion, livestock prices, tax exchanges, land offerings for sale, and inflation. Farms or ranches in good financial positions have been buying more land. However, competition for land is high as there is less land available for sale.

Jim Jansen, an agricultural economist with the university, leads the survey and report. He noted that many operations bought assets like land, machinery, and equipment to protect against inflation and rising prices. He also said that the Federal Reserve’s policies to slow inflation have led to agricultural real estate loans moderating around 8%. Future changes in land value will be tied to the profitability of farming and ranching, and long-term interest rates for financing real estate purchases.

The survey reports the market values on seven types of land across Nebraska. The estimated market value of dryland cropland without irrigation potential rose 3% across the state compared to the prior year. Center pivot-irrigated cropland increased 4%, while gravity-irrigated cropland rose 3%. Jansen also said that rising cattle prices and competition for more acres helped increase grazing land and hayland market values by an average of 6% to 8% in the state.

The survey also found that average cash rental rates for dryland and irrigated cropland are moderating this year compared to recent years, with a 7% decline to 5% increase. This is due to lower crop prices and favorable yields across the United States. However, survey participants expressed concerns about drought, input expenses, and water availability for the upcoming growing season in certain regions. The final report is expected to be published in June, and two virtual workshops covering land and leasing issues, estate planning, and the newly published land values and cash rental rates, will be held on March 27 and 28.

This article has been enhanced with AI assistance. Agree to access AI-generated content by clicking here, or opt for content with less AI influence here.