State ag land values increase

For the first time since 2014, agricultural land values in Nebraska have increased.

According to preliminary results from the University of Nebraska-Lincoln's Farm Real estate Market Survey, ag land values increased 3% over last year's statewide average of $2,650 per acre.

The increase is the first year-to-year jump in price since land values peaked at $3,315 per acre in 2014.

Limited supply of land for sale, strong demand for purchases and disaster assistance payments from the last year drove stability in the market, according to survey participants.

Grazing land and hayland value estimates went up between 2 and 5% from last year. Only two districts record slight declines.

Strong cow-calf pair regions - the northwest, north and central districts - showed growth of market values between 6 and 8%.

Gravity- and center-pivot irrigated cropland rose 2% and 3%, respectively.

Dryland cropland values increased between 3% and 4%.

Northwest and southwest districts noted declines between 2 and 5% for irrigated and dryland classes.

Concerns between landlords and tenants trying to agree on a fair rental rate were noted in the results. Respondents said high property taxes for landlords and low commodity prices for producers fueled concerns.

Land professionals, including agricultural bankers, appraisers and farm and ranch managers take part in the Farm Real Estate Market Survey. Results are tracked by land class and agricultural statistic districts.

Rental rates and land values represent an average of survey participants' responses by district. Actual land values and rental rates may vary, depending on local market and land quality. Land values and rental rates may change as additional surveys are returned.

The preliminary report is available at https://agecon.unl.edu/realestate. It was released in the Department of Agricultural Economics' weekly Cornhusker Economics newsletter.

Final results from the survey are expected to be published in early June.