Nebraska Farm Market Updates for 2017
Posted on: Apr 10, 2017
Each year the University of Nebraska-Lincoln releases the Nebraska Farm Real Estate Market Survey. The preliminary findings of the 2017 survey indicate that as of February 1, 2017 the weighted average farmland value state-wide declined by 10% to $2,805 / acre compared to the prior 12-month period. The 2017 decline represents the third consecutive year of declining values off of all-time record high of value of $3,315 / acre in 2014.
Each region of Nebraska experienced declining values however the amounts ranged from a decrease of only 5% in the North region to a decline of 15% in the southwest region. The land average by region represented a large range of values (region, value per acre and percentage change from figures published in previous market survey):
- Northwest, $755 / acre, -8%
- North, $1,180, -5%
- Northeast, $5,410, -10%
- Central, $3,360, -11%
- East, $6,330, -9%
- Southwest, $1,720, -12%
- South, $3,985, -6%
- Southeast, $4,840, -15%
The largest price decreases by land class in the state occurred in the dryland cropland with irrigation potential and the tillable grazing land at 13% and 12% respectively. The factors of persisting low commodity prices and regulatory policies guiding further development of dryland cropland with irrigation potential contributed to the decline in this land class. In particular, the suppressed prices for wheat affected the land prices in the regions of the state that produce winter wheat, the Central, Southwest and South Districts.
Similarly, rental rates for agricultural land in Nebraska declined. The decline in rates can be attributed to another year of low prices for the major commodities grown and raised across the state. Irrigated cropland rental rates fell between 5% and 10% across Nebraska. Pasture and cow-calf pair rental rates declined 5% to 15% across the state. The regions of the state hit hardest are those that had the highest grazing land or cow-calf rental rates over the past several years.
The figures released for the 2017 study are the preliminary rates. The final results will be published in June 2017.
For more market information on the Nebraska farm real estate market, check out the Agricultural Economics department news of the University of Nebraska’s Institute of Agriculture and Natural Resources. http://agecon.unl.edu/research-and-publications
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