By Jim Jansen
Figure 1. Average value of Nebraska farmland as of February 1, 2018 and percent changes from one year earlier.
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% to $2,270 per acre. This is an 18% reduction since land values peaked in 2014.
The report was written by Jim Jansen, Agricultural Economist, Northeast District, Eastern Nebraska Research and Extension Centera, 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.
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% to $2,270 per acre. This is an 18% reduction since land values peaked in 2014.
The report was written by Jim Jansen, Agricultural Economist, Northeast District, Eastern Nebraska Research and Extension Centera, 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.
Highlights
- Average land value changes by district varied from a 7% reduction in the North District to 1% in the Southeast District.
- Tillable grazing land saw the greatest decline of 7%. The changes were particularly notable in the East and Central districts where values dropped 11% and 10%, respectively. However, tillable grazing land in the Southeast District was an exception and increased 2%.
- 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.