After five years of increases in Nebraska farmland values, the state average dropped 3%, according to preliminary findings from the University of Nebraska-Lincoln’s Nebraska Farm Real Estate Market Development survey. The state average farmland value as of Feb. 1, 2015 was $3,210, down 3% from the 2014 average of $3,416 per acre (see figure). Survey results were released today by the UNL Department of Agricultural Economics. For more information and district details see the Cornhusker Economics report and the related CropWatch article. Survey and report authors are Jim Jansen, UNL Extension Educator, and Roger Wilson, UNL Farm Management Budget Analyst.
- The authors noted that the changes in land value reflected changes in agricultural commodity prices. Generally, grazing and haying land-use categories showed increases while irrigated and dryland cropland showed smaller increases or decreases. The statewide average value for hayland increased 20% from 2014, the highest of any statewide land use category. The state average for non-tillable grazing land increased 12%; tillable grazing land increased 7%.
- The state average decrease for gravity-irrigated land was 4% and for center pivot-irrigated land 2%, compared to a 10% decrease for dryland acres with irrigation potential and a 9% decrease for dryland acres with no irrigation potential.
- Cash rental rates for pasture in all regions increased, ranging from 4% in the north to 34% in the central and southwest districts. Changes in cash rental rates for cropland ranged from an increase of 5% for dryland parcels in central Nebraska to a decrease of 18% for center pivot-irrigated cropland in the southwest district, with most cropland decreasing 5% to 15%.