Gains in Nebraska Land Values and Cash Rents for 2006-2011

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on Nebraska Farm Real Estate in the Marketing and Economics section of CropWatch.

Related news: Fed regulators watch farm banks as soaring land prices draw bubble concern by Joshua Zumbrun, Bloomberg News in the Lincoln Journal-Star

Cropland values have appreciated considerably in the last several years reflecting higher commodity prices. With only a few exceptions cash rental rates have climbed and followed gains in land values quite closely.

A comparison of statewide average land prices from 2006 to 2011 shows that dry land cropland with no irrigation potential increased an average of 70%. Dry land cropland with the potential for irrigation development showed the highest percentage increase of all classifications, averaging a 105% increase over 2006 prices. Center pivot irrigated land had the second highest percentage gain with a 102% increase over the five-year period.
Cash rents increased from 46% to 91% during the same period.

Table 1 shows the average land values and cash rental prices reported each year in the Cornhusker Economics newsletter, published by UNL's Department of Agricultural Economics.

Tom Dorn
Extension Educator, Lancaster County

Table 1. Percentage increases in land values and cash rents 2006 - 2011
Northwest District
	Average Land Values ($)			Average Cash Rent ($)
Description	2006	2011	Change	2006	2011	Change
Dryland, No Irrigation Potential	348	545	57%	24	35	46%
Dryland, with Irrigation Potential	455	550	21%	24	35	46%
Gravity Irrigated	1036	1980	91%	97	*	*
Center Pivot	967	1975	105%	102	195	91%
North District
	Average Land Values ($)			Average Cash Rent ($)
Description	2006	2011	Change	2006	2011	Change
Dryland, No Irrigation Potential	483	800	66%	38	45	18%
Dryland, with Irrigation Potential	650	1200	85%	38	45	18%
Gravity Irrigated	1199	2050	71%	105	*	*
Center Pivot	1480	2955	100%	120	195	63%

Northeast District
	Average Land Values ($)			Average Cash Rent ($)
Description	2006	2011	Change	2006	2011	Change
Dryland, No Irrigation Potential	1641	3450	110%	97	180	86%
Dryland, with IIrrigation Potential	1931	4200	117%	97	180	86%
Gravity Irrigated	2310	4500	96%	133	248	86%
Center Pivot	2600	5100	95%	147	279	90%

Central District
	Average Land Values ($)			Average Cash Rent ($)
Description	2006	2011	Change	2006	2011	Change
Dryland, No Irrigation Potential	933	1605	72%	63	94	49%
Dryland, with Irrigation Potential	1450	2355	62%	63	94	49%
Gravity Irrigated	2295	5725	178%	135	197	46%
Center Pivot	2224	6175	149%	139	221	59%

East District
	Average Land Values ($)			Average Cash Rent ($)
Description	2006	2011	Change	2006	2011	Change
Dryland, No Irrigation Potential	2276	3995	76%	102	178	75%
Dryland, with Irrigation Potential	2642	4765	80%	102	178	75%
Gravity Irrigated	2953	5725	94%	144	259	80%
Center Pivot	3253	6175	90%	157	273	74%
Southwest District
	Average Land Values ($)			Average Cash Rent ($)
Description	2006	2011	Change	2006	2011	Change
Dryland no irrigation potential	519	875	69%	31	48	55%
Dryland w/ Irrigation potential	623	905	45%	31	48	55%
Gravity Irrigated	1340	1975	47%	102	*	*
Center Pivot	1344	2760	105%	120	193	61%

South District
	Average Land Values ($)			Average Cash Rent ($)
Description	2006	2011	Change	2006	2011	Change
Dryland no irrigation potential	875	1738	99%	52	96	85%
Dryland w/ Irrigation potential	1229	2090	70%	52	96	85%
Gravity Irrigated	1925	3940	105%	130	211	62%
Center Pivot	2010	4470	47%	120	193	61%

Southeast District
	Average Land Values ($)			Average Cash Rent ($)
Description	2006	2011	Change	2006	2011	Change
Dryland no irrigation potential	1563	2925	87%	83	142	71%
Dryland w/ Irrigation potential	1854	3640	96%	83	142	71%
Gravity Irrigated	2400	5020	109%	137	236	72%
Center Pivot	2743	4300	57%	152	257	69%

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October 10, 2011

Gains in Nebraska Land Values and Cash Rents for 2006-2011

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