Fourth Annual Drop for Nebraska Farmland Prices

April 5, 2018 05:00 AM
 

For 2018, Nebraska farmland prices average $2,745, which is a 3% drop from a year ago. This annual drop is less than the 9% drop seen in 2017 and similar to the 4% drop reported in 2016, according to a preliminary report of the 2018 Nebraska Farm Real Estate Market survey.

Fourth Annual Drop for Nebraska Farmland Prices

Overall, Nebraska farmland per-acre prices have dropped 17% since reaching a high of $3,315 in 2014.

Low commodity prices and property tax policies are behind the declining farmland values, says Jim Jansen, agricultural systems economics, University of Nebraska.  

All of the seven land classes in the state dropped in value, compared to last year. Tillable grazing land values declined by 6%—the largest drop, followed by non-tillable grazing land and hayland, which each declined by 5%. Gravity irrigated cropland dropped by 4%, and center pivot irrigated cropland decreased by 1%. Dryland cropland with irrigation potential declined by 2%, while dryland cropland without irrigation potential posted a 1% drop.

Looking ahead, survey respondents report Nebraska cropland values will hinge on the earning potential for the major commodities grown across the state, input expenses and monetary policies influencing the cost of borrowing for future land purchases. Regulation policies around the use of water for irrigation were also identified as major influences for irrigated cropland values.

For pasture values, demand for beef and availability of forages during periods of drought are two of the major factors. Recent increases in exports of beef from Nebraska to China remain critical for the value of cattle raised in the state, Jansen notes. Also, extended periods of drought might increase the price and availability of forages, which will influence the potential market value of hayland.

Softer Rental Rates 

Across the state, cropland and pasture rental rates dropped, on average, 2% to 7%. Irrigated cropland rental rates declined 2% to 5%, while dryland cropland rents showed minor increases.

Property taxes are a pivotal concern during rental negotiations, the survey respondents say. “Landlords face the prospects of low returns on their land after accounting for property taxes,” Jansen says. “Tenants face tight cash flows with current commodity prices, input expenses and rental payments. Negotiating an equitable rental rate remains a challenge for landlords and tenants.”

Pasture and cow-calf pair rental rates were mixed, depending on the location. Most districts experienced declines of 2% to 7%, while just a few areas saw increases of 2% to 3%.

This annual survey, conducted by the University of Nebraska-Lincoln, polls appraisers, farm managers and ag bankers.  


More land news is included in every issue of LandOwner Newsletter. Try it free here.
 

Back to news


 

Comments

 
Spell Check

Heather Patrick
Atlanta, GA
4/5/2018 03:28 PM
 

  LIBERATED FROM DEBT, NOW PROPERTIES OWNER WITH THE HELP OF PROSPER LOAN: prosperloanfirm@yahoo.com Share this to help a soul right now, Ya'll will agree with me that the rate of online scamming is increasing by the day. I'm also a victim of it as i was scammed about 25,000usd all in the quest of seeking for an home loan. I actually gave up until a government official directed me to PROSPER LOAN FIRM, Despite the fact of my plight i had to give it a try since it was coming from a top government official. All comment ya'all see online are crap, I know the pains i went through just because i was looking for a loan i had to keep on selling valuables to keep paying unforeseen fees. I and some great personality have started a movement to end online scam because people are dying everyday, losing their homes, selling their property just because they need a loan. Apart from been a beneficiary of about 295,000usd in PROSPER LOAN FIRM lending scheme , We have also made a research to see that they are the best around the globe as far as online lending is concern, They have proven their self trustworthy and reliable back to back without failing. To end people debt, financial burden and been victimized here is the details of prosper loan firm. Email: prosperloanfirm@yahoo.com OR call +1(816) 366-8769 to put an end to your financial needs now. I'm Heather Patrick from Georgia, United States. It doesn't take you anything to share this great information and good news. Email: prosperloanfirm@yahoo.com OR call +1(816) 366-8769 and celebrate financial outbreak for the rest of your life.

 
 

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close