Year in Review: USDA Reports on Higher Land Values and County-Level Cash Rent Estimates Across Nebraska in 2022
Survey findings from the USDA-National Agricultural Statistics Services (USDA-NASS) estimated that Nebraska farm real estate values, including all agricultural land and buildings, in 2022 increased by 21%, to an average of $3,750 per acre (Figure 1). The year-over-year increases mark an increase of $650 for this annual period (USDA-NASS 2022a). Kansas and Iowa led the nation for the highest rates of increase in the market value of farmland, at 25.2% and 21.4% for market value averages of $9,400 and $2,630 per acre. Nebraska marked the third-highest percentage increase for rising farm real estate when ranked against the other states.
For the second year in a row, cropland values in Nebraska reported the second-highest increase in the nation at 21.0%, to an average of $6,000 per acre. Kansas led the country with a rise of 24.5% to a new average of $2,950 per acre (USDA-NASS 2021a). Many of the cropland purchases capitalized on the high commodity prices fueled by disruptions in global trade and drought conditions across the major grain-producing regions of the United States. Monetary policies gradually increased the cost of borrowing during 2022 to combat inflationary pressures. Rising interest rates and input expenses may weigh down on future cropland values unless offset by increasing farm profitability.
To read more about 2022 land values and cash rents, visit the Center for Agricultural Profitability.
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