Nebraska's farm real estate market is experiencing a remarkable upswing as the latest findings from the University of Nebraska-Lincoln (UNL) Farm Real Estate Market Survey disclose soaring land values. The Northwest District, encompassing Banner, Box Butte, Cheyenne, Dawes, Deuel, Garden, Kimball, Morrill, Scotts Bluff, Sheridan, and Sioux Counties, has emerged as a hotspot for remarkable growth in agricultural land prices. These results shed light on the factors driving the upward trajectory of the market.
According to the survey, the average value of farmland in the Northwest District has skyrocketed to an estimated $935 per acre, marking a substantial 13 percent increase from the previous year. Dryland cropland has experienced the most significant surge, surging by an impressive 21 percent to an average value of $905 per acre. Center Pivot Irrigated Cropland, on the other hand, saw a more modest 7 percent increase, reaching $3,280 per acre.
Industry experts attribute this surge in Nebraska's agricultural real estate values to a combination of factors. Current crop and livestock prices, expansion initiatives by farmers, the financial stability of existing landowners, and protection against inflation all contribute to this remarkable growth.
The UNL survey also provides valuable insights into cash rental rates for farmland. In the Northwest District, cropland rental rates have witnessed a 9 to 12 percent increase, while grazing rates, including both pasture per acre and cow-calf pair, have risen by 7 percent compared to the previous year.
These findings offer a glimpse into the overall trends in Nebraska's agricultural land market. It is important to note that the reported land values and rental rates are averages based on responses from survey participants within the Northwest District. Variations in land quality and local market conditions may lead to different values in specific areas.
The Center for Agricultural Profitability will host a webinar on July 13 to explore factors influencing current trends and answer questions. Register at https://cap.unl.edu/webinars
For comprehensive details and a more in-depth analysis, the final results of the Nebraska Farm Real Estate Market Survey can be accessed on the Nebraska Farm Real Estate website: https://cap.unl.edu/realestate
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Categories: Nebraska, General