By Scout Nelson
Nebraska's agricultural community has witnessed a significant uptrend in the market value of its farmland, with a 5% increase over the past year, reaching an average of $4,015 per acre.
This growth, reported by the University of Nebraska–Lincoln in its 2024 preliminary report of the Nebraska Farm Real Estate Market Survey, sets a record in the 46-year history of the survey, underlining a trend of consistent growth in the value of agricultural land in the state.
The annual survey, orchestrated by the university's Department of Agricultural Economics and Center for Agricultural Profitability, gathers insights from a broad spectrum of land industry experts across Nebraska.
These professionals, ranging from appraisers to agricultural bankers, have pointed to various factors fueling this increase, including farm expansion efforts, livestock pricing dynamics, 1031 tax exchanges, limited land offerings, and inflation hedging strategies.
Jim Jansen, an agricultural economist leading the survey, highlighted the tangible asset acquisitions by farms and ranches as a strategic move against inflation, amidst the Federal Reserve's efforts to control rising prices.
The survey predicts that the future landscape of land market values in Nebraska will closely follow the profitability trends in farming and ranching, alongside the movements in long-term financing rates.
Different land types across the state have shown varied growth rates, with dryland cropland and irrigated cropland values experiencing a 3% to 4% rise. Meanwhile, grazing land and hayland values have surged by 6% to 8%, driven by increasing cattle prices and competitive acreage demands.
Rental rates for agricultural lands are also undergoing adjustments, mirroring the moderated growth in cropland values and responding to broader market conditions such as crop price fluctuations and yield outcomes.
Concerns over drought conditions, rising input costs, and water availability have been raised, suggesting a potential impact on the upcoming agricultural season.
To further explore these findings and discuss related agricultural issues, two virtual workshops will be hosted by the university on March 27 and 28. These sessions aim to cover topics like land and leasing issues, estate planning, and the latest trends in land values and cash rental rates.
The workshops are tailored to address the interests of participants from different regions of Nebraska but will offer valuable information for all attendees.
Registration for these informative sessions is open and free at https://cap.unl.edu/land24, inviting all interested parties to join the conversation on the evolving dynamics of Nebraska's agricultural land market.
Photo Credit -gettyimages-artqu
Categories: Nebraska, Business