Gains in Nebraska Land Values and Cash Rents Compared for 2006-2011 - UNL CropWatch, Oct. 9, 2011

Gains in Nebraska Land Values and Cash Rents Compared for 2006-2011 - UNL CropWatch, Oct. 9, 2011

October 10, 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%