This comes after cash purchases for agricultural land increased the two previous years, according to the University of Nebraska-Lincoln’s latest Farm Real Estate Report.
Jim Jansen, Nebraska Extension Educator at the Northeast Research and Extension Center, says mortgages become more common as cropland values rise.
He says less expensive ranch land can still be bought with cash.
“Higher than 60 percent of the sales reported in the northwest, north, and central districts – the source of financing for these sales was done by cash purchases,” Jansen tells Nebraska Radio Network.
Seventy-two percent of land deals were done with cash in the Nebraska Panhandle, where the average ag land value declined $820 per acre.
The report also shows land in the Panhandle continues to be a popular among out-of-state buyers.
Approximately 68 percent of all the land that non-Nebraskans bought in the state was in that area.
“In northwest Nebraska, there are certain areas out there that might be appealing for investors, in terms of buying ground for the use of recreational things, maybe such as hunting,” Jansen says.
The remaining land sales last year to out-of-state buyers were in the eastern third of Nebraska.