Nebraska Farmland Prices Reach New Record High with Fourth Consecutive Year of Growth

Nebraska farmland prices surged by 14% in 2023, marking the fourth consecutive year of growth and establishing a new all-time high, according to a recent report from the University of Nebraska. The final 2022-2023 Nebraska Farm Real Estate Market Highlights report revealed that the average price for an acre of agricultural land in the state reached $3,835 as of February 1, compared to $3,360 in the previous year.

The report, published by the Center for Agriculture Profitability at NU, attributed the price increases to several key factors, including high crop prices, farm expansion, and the growing interest of non-farmer investors.

Jim Jansen, one of the report's co-authors, highlighted the role of high interest rates in driving land purchases as a safeguard against inflation. He explained that land serves as a hedge against inflation by appreciating in value as prices rise across the economy.

Gravity- and center-pivot-irrigated cropland emerged as the highest priced agricultural land, averaging $7,905 and $8,760 per acre, respectively. Notably, the eastern sector of the state experienced the highest increase in farmland values, with 10 counties in southeast Nebraska witnessing a substantial 17% rise, reaching $7,090 per acre.

In the middle-east section of the state, average land prices reached a peak at $9,320, representing a 15% increase and the highest agricultural land values in Nebraska. Northeast Nebraska recorded an average farmland price of $8,035, reflecting a significant 16% increase. Western regions of the state reported more modest increases, ranging from approximately 10% to 13%.

According to Austin Harthoorn, an economist with the Nebraska Farm Bureau, the higher land prices may lead to increased property tax bills for farmers. He noted that the strong economy of recent years has positioned farmers favorably to manage these expenses. The agricultural industry is currently experiencing a highly profitable period, making it an opportune time to be involved in farming.

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