Agricultural land values in Nebraska climbed 14% from 2022 to 2023 to $3,835 per acre. That average includes seven land classes that include everything from center-pivot irrigated row-crop farms to grazing land.
The estimated total market value of Nebraska's agricultural land and buildings rose an estimated $23.8 billion over the past year to $191.8 billion.
That's according to the 2022-23 Nebraska Farm Real Estate Market Highlights report published by the Center for Agricultural Profitability at the University of Nebraska. The report includes survey and sales data compiled from nearly 200 certified appraisers, professional farm managers, agricultural lenders and others with knowledge of land sales and cash rental rates.
Respondents said higher crop prices, farm expansion and non-farmer investor interest helped fuel the rise in prices, while higher interest rates, property tax levels and input prices kept gains in check.
"Rising interest rates were implemented to combat inflation, but concerns about rising expenses saw many operations acquiring tangible assets to hedge their purchasing power," said Jim Jansen, an agricultural economist and co-author of the report.
"Operators and investors use land purchases to hedge against inflation and grow farms or ranches. Higher interest rates may impact agricultural real estate markets without additional profitability to offset the rising financing expense.
Here are a few of the report's highlights
Source: dtnpf.com
Photo Credit: gettyimages-jimfeng
Categories: Nebraska, General