By Scout Nelson
The Center for Agricultural Profitability (CAP) at the University of Nebraska has reported a 2% decline in the average value of agricultural land across the state this year. The new average is $3,935 per acre, a drop from last year’s record of $4,015 per acre. This change follows five consecutive years of increasing land values.
The data comes from CAP’s annual survey of land appraisers, real estate professionals, farm and ranch managers, and agricultural bankers. According to the report, all regions except the Northwest experienced a decline in land value. The Northwest region posted a slight increase of 1%.
The largest value drops occurred in the Northeast and East regions of Nebraska, which are heavily focused on crop production. In these areas, land values fell by approximately 3%. The dip is largely attributed to weakening crop commodity prices and reduced profitability in crop production, which affected all cropland categories.
Dryland cropland without irrigation potential fell by 2%, while dryland with irrigation potential dropped 3%. Center pivot irrigated land declined by 4%, and gravity irrigated cropland saw a 5% decrease.
In contrast, grazing and hayland categories experienced notable growth. Grazing land values increased by 2% to 9%, with the most significant gains found in the East and Central regions. Hayland values also rose, with an increase of 1% to 8%. These increases are linked to record cattle prices, which have raised the value of land used for livestock and forage production.
This shift shows how market conditions directly influence land value trends. Lower crop prices weakened cropland demand, while strong livestock markets drove up the value of grazing and hayland. The report helps landowners, lenders, and real estate professionals better understand Nebraska’s evolving agricultural economy.
Photo Credit: istock-alenamozhjer
Categories: Nebraska, Crops, Hay & Forage, Livestock, Weather