By Scout Nelson
In a remarkable economic shift, Nebraska's average farm real estate value, including buildings, has risen to a record $4,240 per acre. This 13% increase between 2022 and 2023, reported by the USDA National Agricultural Statistics Service, sets a record in the state's agricultural land market.
This increase follows significant rises in the previous years - a 21% increase in 2022 and 11% in the year before. These continuous rises reflect the most substantial growth in farmland values since the early 2010s.
Corroborating the USDA's findings, a University of Nebraska survey in early 2022 indicated a 14% increase in land values. Similarly, the Kansas City Federal Reserve Bank reported notable upticks during the third quarter, with non-irrigated cropland values rising by 5.5%, irrigated land by 9.8%, and rangeland by 12.6%, compared to 2021.
The driving forces behind this upward trend include stronger farm income and a shortage of available plots for sale.
The agricultural sector must remain cautious. Potential challenges such as lower returns, rising interest rates, and ongoing drought conditions could impact future market dynamics, indicating a complex and changing landscape in agricultural real estate.
Photo Credit - istock-alenamozhjer
Categories: Nebraska, Business