By Scout Nelson
The University of Nebraska–Lincoln's 2023-24 Farm Real Estate Market Survey reports a significant 5% increase in the average value of agricultural land across Nebraska, now averaging $4,015 per acre.
This increase marks a historic high in the survey's records, with the total estimated value of agricultural land and buildings in Nebraska now at about $179.2 billion.
The surge in land values is attributed to several economic drivers, including farm expansion efforts, robust livestock prices, and the use of 1031 tax exchanges, which have helped maintain a vibrant market despite broader economic pressures such as inflation and rising interest rates.
The report, compiled by the Center for Agricultural Profitability, indicates that the agricultural real estate market remains strong, with substantial interest from both farmers and non-farmer investors. This is evident from the increased land offerings and the rising prices across various land types.
Significant value increases were noted particularly in grassland and irrigated cropland segments. Grasslands saw the highest spikes, with tillable and non-tillable lands up by 7% and 8%, respectively, while irrigated croplands also enjoyed gains.
Cash rental rates for cropland and pasture have also adjusted upwards, reflecting the overall positive momentum in the agricultural real estate market in Nebraska.
The survey provides valuable insights for stakeholders in the agricultural sector, indicating a healthy and growing market environment despite challenges.
Photo Credit: nebraska-department-of-ag
Categories: Nebraska, Business, Government & Policy