Nebraska land values decline for fourth consecutive year
Agricultural Systems Economics Extension Educator
Final results from the Nebraska Farm Real Estate Survey show a fourth consecutive year of declining Nebraska agricultural land values. The statewide average value dropped 4 percent to $2,270 per acre. This is an 18 percent reduction since land values peaked in 2014.
The report was written by Jim Jansen, agricultural economist, northeast district, Eastern Nebraska Research and Extension Center, and Jeff Stokes, Hanson-Clegg-Allen Endowed Chair, agricultural banking and finance, Department of Agricultural Economics. A preliminary report of their findings was published in the March 15 CropWatch.
Figure 1. Average value of Nebraska farmland as of February 1, 2018, and percent changes from one year earlier.
Average land value changes by district varied from a 7 percent reduction in the north district to 1 percent in the southeast district.
Tillable grazing land saw the greatest decline of 7 percent. The changes were particularly notable in the east and central districts where values dropped 11 percent and 10 percent, respectively. However, tillable grazing land in the southeast district was an exception and increased 2 percent.
Two other categories, dryland cropland with no irrigation potential in the northeast district and nontillable grazing land in the southeast, were the only others to see an increase.
Survey participants identified crop prices and property tax levels as significantly contributing to the drop in land values.
View more land values and rental rates by district and land type in the Report Highlights.
Read the full version: Nebraska Farm Real Estate Market Highlights 2017-2018 at https://agecon.unl.edu/research/2018-nebraska-farm-real-estate-report.pdf.