The University of Nebraska Agricultural Economics Department annual real estate survey shows the average market value of agricultural land in Nebraska declined 3 percent this year compared to last year. The average land value is now $2,650 per acre. This marks the fifth consecutive year of declines in value as market values have dropped approximately 20 percent since reaching a high of $3,315 in 2014. The annual February survey conducted by the department questions land industry professionals in Nebraska on land market happenings.
The survey shows grazing land and hayland values declined 4 and 3 percent respectively, with the largest declines occurring in the central, eastern, and southern portions of the state. Cropland values declined 2-3 percent across the state with the central and eastern portions of the state reporting slight increases and decreases reported in the western and southern parts of the state. Changes in rental rates from last year largely reflect changes in land values.
As to forces impacting land values, survey participants report current trade and property tax policies as two of the most negative forces influencing land values. Landowners also have concerns with current commodity prices and property ownership expenses. For more information on the survey results, go to: https://agecon.unl.edu/cornhusker-economics/2019/nebraska-farm-real-estate-values.
Figure 1: Historic Nebraska Average Land Value
Source: UNL Nebraska Farm Real Estate Market Surveys, 1978-2019