Land Values Turn Corner
Preliminary numbers from the University of Nebraska Agricultural Economics Department annual real estate survey show the average market value for land in Nebraska is 3 percent higher this year compared to last year (Figure 1).
The average land value this year is $2,730 per acre compared to $2,650 last year. The increase is the first one since 2014 when the average value hit a high of $3,315 per acre. Last year’s value was off 20 percent from the high. The annual survey questions land industry professionals on land market happenings.
The estimated market values for dryland cropland rose 3-4 percent; irrigated cropland rose 2-3 percent; and grazing land and hay land values improved 2-5 percent. Gains for cropland values were highest in the Eastern and Southeastern parts of the state, while the gains on grazing land were highest in the Northwestern, Northern, and Central areas. Rental rates on cropland and grazing land were higher compared to last year as well. Survey participants reported the limited supply of land, strong demand for land, and federal assistance payments helped stabilize land markets over the past year. For more information on the survey results, go to: https://agecon.unl.edu/cornhusker-economics/2019/nebraska-farm-real-estate-values.
Figure 1. Nebraska Average Land Values, 1978-2020
Source: UNL Nebraska Farm Real Estate Market Surveys, 1978-2020