Nebraska ag land values jump 6 percent for second-consecutive year
A report from the University of Nebraska-Lincoln (UNL) shows commodity prices, interest rates and farm expansion drove a 6 percent increase in the state’s ag land values.
Jim Jansen, a UNL ag economist, tells Brownfield the value rose to $2,895 per acre. “Some areas of the state up more, some areas not up quite as much, but these trends reflect the changing ag economy that we’ve seen evolve significantly over the last 6-8 months.”
The 2021 Nebraska Farm Real Estate Market Survey showed rate increases were highest in the north, northeast, central and southeast districts of the state, with average increases of 6% to 8% over the prior year. Western regions reported smaller increases, between 3% and 5%.
Jansen says cash rent values also increased 3-5 percent. “This tends to reflect the time in which we have higher commodity prices being bid into the value of the cash rent. The biggest concern many ag producers are seeing on the dryland side are those people who don’t have irrigation. It’s going to be a potential shortfall in crop yields from the weather we’re seeing.”
Jansen says the estimated statewide value of center pivot-irrigated cropland rose by about 8% across the state. Dryland cropland values rose by about 6%. Grazing land and hayland market values are about 3% to 5% higher than the prior year.
Jim Jansen, UNL Ag Economist: