Nebraska’s land values are expected to start declining slightly this year, according to Nebraska Bankers Association chairman John Stinner of Gering. He’s forecasting a gradual downturn.
“I think there will be more people interested in selling land,” Stinner says. “Right now, we’ve heard four or five instances throughout the Midwest where land was ‘no saled’ so, I think it does put a cap on that and possibly start to bring the price of land down.”
Stinner says he expects it to be a slow decrease in land values.
“I truly believe that this interest rate cycle really doesn’t pick up until 2015,” Stinner says. “That will have a direct impact on valuations but nothing dramatic.”
Stinner says he sees a decline in rental rates estimated at between 10 and 15 percent. He says those renegotiations will take place this month and next month.
Despite extreme drought across the state during 2012, agricultural land values continued their upward climb with an all-land average increase of 25-percent for the year ending February 1, 2013. Nebraska’s 2013 all-land average value topped $3,000 per acre.
By Jerry Oster, WNAX, Yankton