By Scout Nelson
The University of Nebraska-Lincoln has released preliminary findings from its 2024 Nebraska Farm Real Estate Market Survey, indicating a 5% increase in the average market value of agricultural land across the state to $4,015 per acre.
This year's increase contributes to a trend of consecutive growth over the past three years, marking a historic peak in non-inflation-adjusted land values since the survey began 46 years ago.
Survey results, based on feedback from various land industry professionals in Nebraska, reveal that most of the appreciation is concentrated in the Northwest region, with an estimated average land value of $960 per acre.
Factors contributing to rising land values include strategic farm expansions, robust livestock prices, favorable tax exchange conditions, and limited market offerings.
Despite the pressures of fluctuating crop prices and elevated input costs, which have led to moderated cropland rental rates, pasture and cow-calf pair rental rates have experienced an uptick.
This is largely due to the tightening of national cattle inventories and rising cattle prices, prompting adjustments in cash rental negotiations to include drought considerations.
The survey's comprehensive analysis aids stakeholders in making informed decisions by providing a clear view of current trends and potential future shifts in the agricultural real estate market.
Photo Credit: gettyimages-jacqueline-nix
Categories: Nebraska, Business