For the second year in a row, agricultural land values have declined in Nebraska.
The University of Nebraska-Lincoln’s preliminary Farm Real Estate Market Survey shows, on average, values dropped four percent compared to a year ago.
Jim Jansen, Nebraska Extension educator, says the decline reflects the state of beef and corn markets.
“With an expectation of lower crop revenue or lower revenue from a livestock enterprise that would support these land classes, there’s a strong relationship between the value of an asset, and also the ability of that asset to generate revenue or income,” Jansen tells Nebraska Radio Network.
Depending on the type of property and location, some values dropped as much as ten percent.
However, Roger Wilson, farm management budget analyst with the University of Nebraska-Lincoln, says not everyone is facing a decline.
“Really, for the individual producer, it depends on the type of land that’s involved and the area that they’re in,” Wilson tells Nebraska Radio Network, “especially where Nebraska is so diverse. From east to west, it’s a whole different ballgame.”
Wilson says the annual change in land values should not impact the average consumer, but thinks it is another factor in land-lease arrangements.
“You have a dynamic here of landowners having good reason for wanting the lease or rent to stay the same, or perhaps go up,” Wilson says, “and you have good reasons why the tenant would want the rents to go down.”
The statewide all-land average value for the year ending Feb. 1 was $3,135 per acre, down $115 per acre from 2015. Average farmland values for the eight districts and the percentage decrease from 2015 were: northwest, $820 (-5 percent); north, $1,270 (-5 percent); northeast, $6,095 (-1 percent); central, $3,780 (-4 percent); east, $7,025 (-1 percent); southeast, $5,685 (-5 percent); south, $4,140 (-10 percent); and southwest, $2,010 (-3 percent).
Land appraisers, farm managers or agricultural finance professionals from Nebraska interested in participating in future Nebraska Farm Real Estate Market Surveys are invited to contact the UNL Department of Agricultural Economics at 402-472-3401 or firstname.lastname@example.org.
The preliminary report can be found HERE.
AUDIO: Mike Loizzo reports [:39]