Nebraska farmland values up 16%, university survey shows
LINCOLN, Neb. — Nebraska farmland values rose an average of 16% from a year earlier, to a statewide average of $3,360 per acre, according to preliminary market findings from the l 2022 University of Nebraska-Lincoln Farm Real Estate Survey. This is the largest increase in the market value of farmland in the state since 2014 and the highest non-inflation-adjusted land value statewide in statewide history. ‘investigation.
Rising commodity prices and interest rates near historic lows have contributed to the recent strength in the home sales market, according to the survey. Survey participants also reported that those who purchased land saw the asset as a hedge against inflation and economic uncertainty.
“Many farms have improved their financial situation over the past year, despite rising machinery costs and input expenses,” said Jim Jansen, agricultural economist at Nebraska Extension, co-author of the survey and of the relationship with Jeffrey Stokes, professor in the Department of Agriculture. Economy.
Jansen noted that the outlook for 2022 appears favorable as commodity prices continue to rise, but cautioned about rising input spending and concerns about drought in Nebraska.
Statewide, the preliminary report found that estimated values for center pivot irrigated cropland increased by about 17 percent. The value of dryland cropland increased by 15% to 19%. Market values for pasture and hay land are about 10% to 13% higher than the previous year.
The survey results also revealed that cash rental rates for dryland and irrigated cropland tended to increase, averaging about 10% to 15% higher than the previous year. Survey participants indicated that crop prices were the main factor contributing to the increase in rental rates.
Pasture and cow-calf pair rental rates trended steady to higher, with statewide average rates increasing about 6-8% from the prior year.
The Nebraska Farm Real Estate Market Survey is an annual survey of land professionals, including appraisers, farm and ranch managers, and farm bankers. It is conducted by the Center for Agricultural Profitability, based in the Department of Agricultural Economics. The survey results are divided by land category and agricultural statistics district. The property values and rental rates presented in the report are averages of survey participants’ responses by district. Actual land values and rental rates may vary depending on the quality of the parcel and the local market for an area. Preliminary property values and rental rates are subject to change as additional surveys are returned.
The preliminary report was published in the Agricultural Economics Department’s weekly bulletin Cornhusker Economics on March 16. Its findings will be discussed at two virtual landlord/tenant workshops on cash rents to be held on March 24 and 25. To register for the workshops and read the report, visit https://cap.unl.edu/realestate. The final results of the survey are expected to be released in June.