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Nebraska ag land valuations show a slight decrease

Property valuations on Nebraska ag land dropped slightly this year, according to a report from the state Department of Revenue.

The drop of .15 percent statewide is the first decline in ag land valuations in at least 25 years.

Nebraska Farm Bureau senior economist Jay Rempe says the drop was not unexpected.

“I think of it more as just hitting the pause button this year,” Rempe says. “Yes, they dropped ever so slightly. We’re seeing the land values and what’s happening in the markets—the prices anyway—starting to reflect themselves in the assessed values now.”

But Rempe says it’s hard to say if it will mean lower property taxes for farmers and ranchers.

“It really depends on the local governments’ spending decisions. Particularly schools—they’re the biggest users of property taxes,” Rempe says. “It should mean that there will be a little more—just a hair more—balance at the local level. That maybe residential properties and commercial properties will pick up more of the burden than agricultural land.”

Even with this pause in valuation increases, Rempe anticipates Farm Bureau and other ag groups will continue to push for property tax relief in the Nebraska legislature.

“We have members that have seen taxes increase—and this is not values, this is taxes—over 200 percent. There’s still a long ways to go to make things right.”

AUDIO: Jay Rempe