The rates of increase were highest in the northern, northeastern, central and southeastern districts of the state, with average increases of 6% to 8% from the previous year . Western regions reported smaller increases, between 3% and 5%.
The survey found that current crop prices, interest rates, and purchases for farm expansion were contributing to the increase in land values, as were purchases of land by non-farm investors and federal farm program payments, according to respondents.
Participants noted that the prospects for future increases in land values remain better than in previous years of declining market values. Of the 16 forces measured in the survey, only farm input costs, future property tax policies, and property tax levels had a negative impact on the market value of land.
The statewide estimated value of irrigated center pivot cropland has increased by approximately 8% statewide. The value of cultivated land in drylands has increased by about 6%. The market value of pasture and hay land is about 3-5% higher than the previous year.
The final survey results also found that rental rates for cropland and pasture in the state have increased on average from around 4% to 8%.
The Nebraska Farm Real Estate Report is an annual survey conducted by the university’s agricultural economics department and published by the Center for Agricultural Profitability. The survey panel of land professionals includes appraisers, farm and ranch managers, and agricultural bankers. The survey results are divided by land class and agricultural statistics districts. The land values and rental rates presented in the report are averages of the responses of survey participants by district. The actual value of land and rental rates may vary depending on the quality of the plot and the local market in an area.
The final report is available on the Center de profitability agricole website, https://cap.unl.edu/realestate.