PANHANDLE, Neb. - (KNEP) - The Nebraska Farm Real Estate Market Survey by the University of Nebraska-Lincoln shows agricultural land value in the Panhandle declined for the fourth straight year.
The average value is estimated to be $680 per acre; which is a 5% decrease from last year. Dryland (no irrigation potential 4% and irrigation potential 7%) and hayland (7%) saw the largest declines. Meanwhile, tillable grazing land saw the smallest decrease at 2%.
The survey also showed grazing land and monthly cow-calf pairs were the only two categories to see a positive change in average rental rate.
Ag Economist Jessica Groskopf stated this doesn’t adjust taxes but it may mean a decrease in rent costs. She added there are multiple factors influencing the quality and value of ag land but the main topic is commodities. In recent years, commodity prices have struggled but this year there is an increase. Groskopf noted the poor crop season is also playing a factor.
She noted ag land is a long-term investment. There was a significant increase in value from 2012-15 and now for the past four years there has been a steady decrease. Groskopf called this an adjustment not a bubble burst like the 1980’s because compared to that decade, when there were double digit decreases, this is just a four to five percent drop off every year.
For now, Groskopf advises land owners to ride it out and not lend out all of their money to land value assets. She also noted this doesn’t tell land owners exactly what their land value is; for that an assessor is needed.