Updated land values and cash rental rates for 2024 are now available in the 2024 Nebraska Farm Real Estate Market Survey's preliminary report.

The market value of agricultural land in Nebraska increased by 5% over the prior year, to an average of $4,015 per acre, according to the University of Nebraska–Lincoln’s 2024 Nebraska Farm Real Estate Market Survey preliminary report. This marks the third consecutive year of increases in the market value of agricultural land in Nebraska, setting another high in the non-inflation-adjusted statewide land value in the survey's 46-year history.

The report is issued annually by the university’s Department of Agricultural Economics and Center for Agricultural Profitability. It is based on a survey of land industry experts across Nebraska, including appraisers, farm and ranch managers, agricultural bankers and other industry professionals.

Land industry professionals responding to the survey attributed the rise in Nebraska agricultural real estate values to purchases for farm expansion, current livestock prices, 1031 tax exchanges, the amount of land offerings for sale, and as a hedge against inflation. Farms or ranches in strong financial positions look to expand their operations by purchasing additional land. Competition in the industry remained strong as operators faced lower land offerings available for sale.

According to Jim Jansen, an agricultural economist with the university who leads the survey and report, many operations acquired tangible assets, such as land, machinery, and equipment, to hedge against inflation and rising prices.

“The Federal Reserve's policies to slow inflation have led to agricultural real estate loans moderating around 8%,” Jansen said. “Future changes in the market value of land across the state will be tied to the profitability of farm and ranching along with long-term interest rates for financing real estate purchases.”

Continue this article on the Center for Agricultural Profitability.

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