Farmland values in Nebraska are at historic levels. With a statewide average of $3,360 per acre, values are up 16% from the prior year, according to the preliminary findings of the University of Nebraska–Lincoln’s 2022 Farm Real Estate Market Survey.
That marks the largest increase in the market value of agricultural land in the state since 2014 and is the highest non-inflation-adjusted statewide land value in the history of the survey.
Higher commodity prices and historically low interest rates lead to the robust real estate sales market, according to the survey. Participants also reported those purchasing land looked to the asset as a hedge against inflation and economic uncertainty.
“Many operations improved their financial positions in the last year, despite rising machinery costs and input expenses,” shared Jim Jansen, agricultural economist with Nebraska Extension who co-authored the survey and report with Jeffrey Stokes, a professor in the Department of Agricultural Economics.
The outlook for 2022 appears favorable, Jansen noted, as commodity prices continue to rise, but cautioned against rising input expenses and concerns about drought across Nebraska.
Statewide, the preliminary report found these 2022 values by land type versus last year:
- Center pivot-irrigated cropland rose by about 17%
- Dryland cropland values rose between 15% and 19%
- Grazing land and hayland market values range from about 10% to 13%.
For rental rates, the survey found cash rents for dryland and irrigated cropland trended higher, averaging about 10% to 15% above 2021. Grazing land and cow-calf pair rental rates also trended steady to higher, with average rates increasing 6% to 8% over last year.
The Nebraska Farm Real Estate Market Survey is an annual survey of land professionals, including appraisers, farm and ranch managers and agricultural bankers. It is conducted by the Center for Agricultural Profitability, based in the Department of Agricultural Economics. Final results from the survey are expected to be published in June.
