2017 Farm Real Estate Report Details Price Decline

Map of Nebraska real estate values
Figure 1. Average value of Nebraska farmland on Feb. 1, 2017 and percent change from one year earlier. (Source: 2017 Nebraska Farm Real Estate Report)

2017 Farm Real Estate Report Details Price Decline June 30, 2017

The 2017 Nebraska Farm Real Estate Report released today indicates that based on 2017 market values, the estimated total value of agricultural land and buildings in Nebraska fell to approximately $127.7 billion. That represents a decline of approximately $5.6 billion from 2016.

Crop and livestock prices were cited as the main reasons for the drop in agland prices. Survey panel members also cited property taxes, farm input costs, and financial health of current owners.

The report, which breaks down agland values by use and by district, can be downloaded from the Department of Agricultural Economics website at http://agecon.unl.edu/realestate/2017-farm-real-estate-report.

Jim Jansen, report author, noted that this marks the third consecutive year of value decline from the record high of 2014 in the all-land category across Nebraska. For the year ending Feb. 1, 2017, ag land values averaged about 9% lower than the previous year. The state average was $2,820 per acre or about 9% ($295 per acre) less than the prior year’s value of $3,115 per acre. Ag real estate values in the western two-thirds of Nebraska, which includes the northwest, north, central, southwest, and south districts, dropped an average 5%-10%, Jansen said, while ag land in the northeast, east, and southwest districts dropped 10%-15%.

A preliminary report on 2017 land values was released in March.

Additional Farm Management Data

A special feature in this year's report explores 2017 crop share leasing trends in Nebraska, including a table of production expenses paid by the landlord to the tenant for common crop share lease arrangements. The report also includes two tables reporting on 2017 cash rental rates: one for farmland and pasture and one for monthly pasture rental.

We will be reporting additional information from the report in upcoming issues of Cornhusker Economics and CropWatch.