Soil

Why are soil types important?

Soil type is an important factor in farmland productivity, affecting water-holding capacity, drainage, fertility, erosion potential, and the crops that can be successfully grown. Soil characteristics can also influence farmland value and investment potential. AgWest Land Brokers considers soil productivity when evaluating agricultural properties.


What is Holdrege silt loam?

Holdrege silt loam is a highly productive soil series commonly found in parts of south-central Nebraska, including the area around Holdrege. It is generally well suited to crop production because of its favorable soil characteristics and water-holding capacity. Specific productivity and crop performance can vary by field and management practices.


What is Class I farmland?

Class I is the highest classification in the USDA land capability classification system. Class I soils have few limitations for agricultural use and are generally well suited to sustained crop production with proper management. Soil class is one of several factors that can influence a farm’s productivity and value.


What is NCCPI?

NCCPI stands for National Commodity Crop Productivity Index. It is a USDA rating system used to compare the productivity potential of soils for crop production across different areas. NCCPI scores can be useful when comparing farmland, but they should be considered alongside local production history, irrigation, weather, and other property characteristics.


What does CSR mean?

CSR stands for Corn Suitability Rating, a soil productivity rating commonly used in parts of the Midwest to evaluate a soil’s suitability for growing corn. CSR systems can help compare the productive potential of different soils, although the specific rating system and interpretation can vary by state.


What is a soil productivity index?

A soil productivity index is a rating used to estimate the relative agricultural productivity of a soil based on characteristics such as texture, drainage, water-holding capacity, and other properties. Different states and organizations use different productivity indexes, so buyers should understand which rating system is being used. AgWest Land Brokers can help buyers interpret soil productivity information when evaluating farmland.


How do I read a soil map?

A soil map identifies the different soil types and their locations within a property. Start by locating the property boundaries, then review the soil series, productivity ratings, drainage characteristics, and other information associated with each soil type. USDA Web Soil Survey is a useful resource for researching soils, and AgWest Land Brokers can help buyers understand how soil information relates to a property’s agricultural potential.


Which Nebraska soils are most productive?

Nebraska has many highly productive soil types, particularly deep, well-drained soils with good water-holding capacity and fertility. Productive soils are found throughout the state, including areas along major river valleys and in central and eastern Nebraska. There is no single “best” soil type for every situation, so local productivity, irrigation, rainfall, and crop history should also be considered.


What is organic matter?

Organic matter is decomposed plant and animal material in the soil. It plays an important role in soil health by helping improve water-holding capacity, nutrient availability, soil structure, and biological activity. Maintaining or increasing organic matter can contribute to long-term soil productivity.


Why does pH matter?

Soil pH affects how nutrients are made available to plants and can influence microbial activity and overall crop growth. Most crops perform best within a certain pH range, although the ideal range varies by crop and soil type. Soil testing can identify pH issues and help determine whether amendments such as lime are needed.


How often should soil be tested?

Many agricultural fields benefit from soil testing every two to four years, although more frequent testing may be appropriate for certain crops, management systems, or problem areas. Testing can help producers monitor nutrient levels and pH and make more informed fertilizer and amendment decisions.


How do I improve soil health?

Soil health can be improved through practices such as reducing tillage, maintaining crop residue, using cover crops, rotating crops, minimizing erosion, and managing nutrients appropriately. The best practices depend on the soil type, climate, crops, and individual farming operation. Healthy soils can improve water management, productivity, and long-term farmland performance.

Dryland Farming

What is dryland farming?

Dryland farming is crop production that relies primarily on natural rainfall rather than irrigation. Because there is no supplemental irrigation, soil type, rainfall, moisture conservation, and weather conditions play a major role in production. AgWest Land Brokers can help buyers evaluate the productivity and value of dryland farmland.


Is dryland farming profitable?

Yes, dryland farming can be profitable, although returns can vary significantly from year to year because production depends heavily on rainfall and weather. Crop prices, input costs, soil productivity, and management practices also affect profitability. AgWest Land Brokers can help buyers evaluate a property’s production potential and market value.


What crops grow best on dryland?

The best dryland crop depends on the region, soil type, available moisture, and growing conditions. In Nebraska and Kansas, common dryland crops include corn, soybeans, wheat, grain sorghum, and various forage crops. Local climate and soil conditions should be considered when determining which crops are best suited to a particular property.


How does rainfall affect yields?

Rainfall is one of the most important factors affecting dryland crop yields. Both the amount and timing of rainfall matter, with adequate moisture during critical stages of crop development often having a significant impact on final yields. Dryland producers use soil and moisture management practices to make the most of available rainfall.


What tillage practices conserve moisture?

Practices such as no-till, strip-till, reduced tillage, and maintaining crop residue can help conserve soil moisture by reducing evaporation, limiting soil disturbance, and improving water infiltration. The best approach depends on the crop, soil type, climate, and farming operation.


What is residue management?

Residue management is the practice of managing leftover plant material, such as corn stalks and soybean residue, after harvest. Leaving appropriate amounts of residue on the soil surface can reduce erosion, protect the soil, improve moisture retention, and help maintain soil health. AgWest Land Brokers considers farming practices and soil conditions when evaluating agricultural properties.


Can dryland become irrigated?

Potentially, but not every dryland property can be converted to irrigation. The availability of groundwater or surface water, well capacity, NRD regulations, certified irrigated acres, infrastructure, economics, and other factors must be considered. Before purchasing land with the intention of adding irrigation, buyers should verify that irrigation is legally and practically feasible. AgWest Land Brokers can help buyers identify properties with irrigation potential and understand the factors that should be investigated.

Irrigation

What is an irrigation pivot?

An irrigation pivot, or center pivot, is a sprinkler irrigation system that rotates around a central point to apply water to crops. Pivots are commonly used on agricultural land because they can efficiently irrigate large areas with relatively consistent water application. AgWest Land Brokers regularly markets properties with irrigation systems and can help buyers understand the irrigation features of a property.


How does a center pivot work?

A center pivot is anchored at a central point and uses a series of connected towers and sprinkler pipes that rotate around that point. Water is pumped into the system and distributed through sprinklers or other application devices as the pivot moves across the field. The system’s size, design, water supply, and application rate determine how much acreage it can irrigate.


What is a corner system?

A corner system is an extension added to certain center pivots that allows the irrigation system to reach additional acreage in the corners of a field. The extension swings outward when needed and retracts as the pivot returns to its normal path. Corner systems can increase the percentage of a field that can be irrigated.


What is flood irrigation?

Flood irrigation is a method of applying water by allowing it to flow across the surface of a field. It is an older irrigation method that can be effective in areas with suitable terrain, soils, and water availability, but it generally requires different field preparation and management than sprinkler irrigation.


What is subsurface drip irrigation?

Subsurface drip irrigation, or SDI, uses buried drip lines to deliver water directly into the soil near the crop’s root zone. It can provide precise water application and reduce certain types of evaporation and runoff. SDI systems require specialized installation and maintenance and are used on some high-value or intensively managed agricultural land.


What is gravity irrigation?

Gravity irrigation uses the natural force of gravity to move water across a field rather than relying primarily on pressurized sprinkler equipment. Flood and furrow irrigation are common examples. The effectiveness of gravity irrigation depends heavily on field slope, soil type, water availability, and field design.


What is dryland farming?

Dryland farming is crop production that relies primarily on natural precipitation rather than irrigation. Dryland yields can vary significantly depending on rainfall, soil type, weather, and farming practices. AgWest Land Brokers can help buyers compare the productivity and market value of dryland and irrigated properties.


What is a certified irrigation well?

A certified irrigation well is a groundwater well that has been properly registered or certified under the applicable state and local requirements. In Nebraska, irrigation wells and groundwater use are regulated through the state’s Natural Resources Districts (NRDs), with requirements varying by location. Buyers should verify the status and documentation of irrigation wells before purchasing a property.


How deep are irrigation wells?

Irrigation well depths vary significantly depending on location, geology, aquifer conditions, and the intended use of the well. In Nebraska, wells can range from relatively shallow to several hundred feet deep. AgWest Land Brokers can help buyers review available well records, including depth and pumping information, when evaluating an irrigated property.


How much water does corn need?

Corn’s water needs vary based on weather, soil type, growth stage, planting date, and other conditions. A mature corn crop can use several inches of water during periods of peak demand, with total seasonal water needs often around 20–25 inches when considering both rainfall and irrigation. Local conditions can significantly change the amount of supplemental irrigation required.


How many acres can one irrigation well water?

There is no single acreage limit for every irrigation well. The amount of land a well can adequately irrigate depends on pumping capacity, available water, crop water requirements, irrigation system efficiency, soil type, and local regulations. AgWest Land Brokers can help buyers review well capacity and irrigated acreage when evaluating a property.


How long do irrigation pivots last?

A well-maintained center pivot can often operate for 20–30 years or more, although individual components may need to be repaired or replaced during its lifetime. Age, maintenance, water quality, operating conditions, and equipment quality all affect its useful life. AgWest Land Brokers considers the age and condition of irrigation equipment when evaluating an irrigated property.


What maintenance do pivots require?

Regular pivot maintenance can include checking tires and gearboxes, inspecting electrical components, replacing worn sprinkler parts, checking alignment, lubricating components, and monitoring for leaks or mechanical problems. Proper winterization and routine inspections can help extend the life of the system. Buyers should consider having older or unfamiliar equipment professionally inspected.


How often should irrigation wells be tested?

Irrigation wells should be monitored regularly for changes in pumping capacity, water levels, and equipment performance. The appropriate testing schedule depends on the well, local requirements, and the operator’s needs. When purchasing irrigated farmland, buyers should review available well records and consider professional testing if the well’s condition or performance is uncertain.


What are water rights?

Water rights are legal rights governing the use of water from sources such as groundwater or surface water. The rules surrounding water rights vary by state and location. In Nebraska, groundwater use is regulated through state law and local Natural Resources Districts, making it important for farmland buyers to understand the specific water rights and restrictions associated with a property.


Can irrigation rights be transferred?

In some cases, irrigation rights, permits, or associated water-use rights can be transferred, but the requirements depend on the type of water right, location, and applicable regulations. Nebraska’s Natural Resources Districts may have specific requirements regarding transfers of groundwater allocations or irrigated acres. Buyers and sellers should verify the status and transferability of water rights before completing a transaction.


What is an NRD?

NRD stands for Natural Resources District. Nebraska has 23 NRDs that are responsible for managing natural resources within their respective districts, including groundwater, surface water, soil, and other natural resources. Because regulations can differ between districts, knowing which NRD a property is located in is important when buying or selling irrigated farmland.


Why do NRDs regulate irrigation?

NRDs regulate groundwater use to help protect Nebraska’s groundwater resources and maintain a sustainable supply for current and future users. Regulations can address issues such as well permits, irrigated acres, groundwater allocations, pumping, and water management areas. Requirements vary by NRD, so property-specific research is important.


What are pumping restrictions?

Pumping restrictions are regulations that limit or manage the amount, timing, or manner in which groundwater can be pumped. Restrictions may be implemented to protect groundwater supplies, surface water interactions, or other natural resources. The specific restrictions that apply depend on the property’s location and NRD.


How much electricity does a pivot use?

Electricity use varies significantly depending on the pivot’s size, pumping requirements, pressure, terrain, water source, and operating time. The pivot itself may use relatively little electricity compared with the pump that supplies water to it. AgWest Land Brokers can help buyers review available irrigation equipment and operating information when evaluating the costs associated with an irrigated property.

Farmland Values

Why is farmland valuable?

Farmland is valuable because it is a finite resource that can generate income through crop production, livestock grazing, leasing, and other uses. Productive agricultural land can also provide long-term investment potential and may appreciate over time. AgWest Land Brokers can help landowners understand what makes their particular property valuable in today’s market.


What determines farmland value?

Farmland value is determined by factors including soil productivity, location, irrigation, water availability, tillable acres, improvements, access, rental income, recreational opportunities, and current market conditions. Recent comparable sales are also an important indicator of market value. AgWest Land Brokers evaluates these factors when helping buyers and sellers determine a property’s market value.


How are farmland appraisals done?

A farmland appraisal typically considers comparable sales, the property’s income-producing potential, and the cost or value of improvements. An appraiser will also consider factors such as soil productivity, location, irrigation, acreage, and highest and best use. AgWest Land Brokers can provide market insight and comparable sales information, while a licensed appraiser can provide a formal appraisal.


What is the average price of farmland in Nebraska?

Nebraska farmland values vary significantly by region and land type, including irrigated cropland, dryland, pasture, and recreational properties. According to the University of Nebraska-Lincoln’s annual Nebraska Farm Real Estate Market Developments report, the statewide average value changes from year to year. AgWest Land Brokers can provide more specific insight into current land values based on the county, land type, and characteristics of a particular property.


Why are irrigated acres worth more?

Irrigated farmland generally has greater production potential because irrigation provides a more reliable water supply during periods of limited rainfall. This can increase expected yields and income compared with similar dryland acres. The value of irrigation also depends on well capacity, water availability, irrigation equipment, operating costs, and local regulations.


Does soil type affect value?

Yes. Soil type can have a significant impact on farmland value because it influences productivity, drainage, crop suitability, and expected yields. Highly productive soils generally command higher prices than less productive soils, although other property characteristics also play an important role. AgWest Land Brokers can help buyers and sellers understand how soil productivity affects a property’s market value.


Do hunting opportunities increase value?

They can. Deer, waterfowl, turkey, upland game, timber, water, and other recreational features can increase a property’s appeal to buyers interested in hunting and recreation. The impact on value depends heavily on the location, quality of the habitat, accessibility, and overall recreational potential. AgWest Land Brokers evaluates both agricultural and recreational characteristics when marketing properties.


Do grain bins add value?

Grain bins can add value to a farm by providing on-site storage and potentially reducing transportation and marketing costs. Their value depends on factors such as capacity, age, condition, location, and the cost of replacing or constructing similar storage. AgWest Land Brokers can help evaluate grain storage and other improvements as part of a property’s overall value.


Does a house add value?

A house can add value to farmland, but the amount depends on its condition, size, location, functionality, and demand for housing in the area. A well-maintained residence may increase a property’s appeal, while an older or deteriorated structure may contribute little value or create additional costs. AgWest Land Brokers can help determine how a residence fits into the overall value and marketability of a property.


How do improvements affect farmland value?

Improvements such as irrigation systems, grain bins, homes, barns, fencing, livestock facilities, and other structures can increase a property’s value when they are useful and in good condition. However, the cost of an improvement does not always equal the amount it adds to market value. AgWest Land Brokers can help landowners evaluate which improvements contribute value before selling.


What lowers farmland value?

Factors that can lower farmland value include poor soil productivity, limited water, inadequate access, drainage problems, outdated or damaged improvements, environmental restrictions, unfavorable easements, and weak local demand. Market conditions can also affect values. AgWest Land Brokers can help identify the strengths and potential challenges of a property when evaluating its market value.


How do commodity prices affect land values?

Strong commodity prices can increase farmers’ income and purchasing power, which may support higher farmland values. Lower commodity prices can reduce profitability and buyer purchasing power, potentially putting downward pressure on land values. However, farmland prices are influenced by many factors, so commodity prices are only one part of the overall market.


How do interest rates affect farmland prices?

Interest rates can influence farmland prices because higher rates generally increase the cost of borrowing and can reduce buyers’ purchasing power. Lower rates can make financing more affordable and may support stronger demand for land. AgWest Land Brokers monitors market conditions and buyer activity to help clients understand how changing interest rates may affect farmland values.


How does water availability affect value?

Water availability can have a major impact on farmland value, particularly in areas where irrigation significantly increases production potential. The value of water depends on factors such as well capacity, certified irrigated acres, water rights, groundwater regulations, reliability, and local water availability. AgWest Land Brokers can help buyers and sellers evaluate the water-related characteristics that contribute to a property’s value.

Buying Farmland

How do I buy farmland?

Buying farmland typically involves finding a property, evaluating its value and potential, securing financing, completing due diligence, negotiating an offer, and closing the transaction. AgWest Land Brokers can help buyers identify properties, understand the market, evaluate opportunities, and navigate the purchase process.


What should I look for before buying farmland?

Consider soil productivity, location, access, irrigation and water rights, improvements, drainage, taxes, existing leases, recreational potential, and recent comparable sales. Your intended use of the property should also guide what you prioritize. AgWest Land Brokers can help you evaluate these factors and identify potential concerns before purchasing.


How do I finance farmland?

Farmland can be financed through agricultural banks, Farm Credit institutions, USDA programs, private lenders, and other financing sources. Loan terms and requirements vary depending on the buyer, property, and intended use. AgWest Land Brokers can help buyers understand what information lenders may need and connect them with agricultural lending resources.


Can beginning farmers get loans?

Yes. Beginning farmers may qualify for specialized agricultural financing programs, including certain USDA Farm Service Agency (FSA) programs. Eligibility requirements vary by program. AgWest Land Brokers can help beginning farmers identify properties that fit their goals and point them toward potential financing resources.


What credit score is needed to buy farmland?

There is no single credit score required to purchase farmland. Lenders typically consider credit history, income, debt, down payment, experience, repayment ability, and the property being purchased. Buyers should talk with an agricultural lender early in the process to understand their financing options.


How much down payment is required?

Down payment requirements vary by lender, buyer, property, and loan program. Some agricultural financing programs may offer different requirements for beginning farmers or qualified buyers. AgWest Land Brokers can help you identify properties within your budget, while your lender can determine the specific financing terms available to you.


Is farmland a good investment?

Farmland can be an attractive long-term investment because it can provide rental income and potential appreciation while being backed by a tangible asset. However, farmland values and returns vary by location, property type, market conditions, and management. AgWest Land Brokers can help investors evaluate a property’s agricultural income potential and market characteristics.


How do I know if farmland is overpriced?

Compare the property with recent sales of similar farms and consider factors such as soil productivity, irrigation, location, improvements, rental income, and current market conditions. Price per acre alone does not tell the whole story. AgWest Land Brokers can provide local market knowledge and help buyers evaluate whether an asking price is supported by the property’s characteristics.


How do I calculate return on investment?

A basic farmland return calculation considers the property’s annual income, operating or ownership expenses, and the amount invested in the property. Potential appreciation can also affect long-term returns. Because farmland investments can be complex, AgWest Land Brokers can help buyers evaluate the income-producing characteristics of a property before making a purchase.


What should I inspect before buying farmland?

Inspect the property’s soils, irrigation wells and equipment, water rights, fencing, drainage, access, buildings, roads, easements, environmental conditions, and other improvements. Review leases, taxes, production history, and relevant property records as well. AgWest Land Brokers can help buyers identify important items to investigate during the due diligence process.


What questions should I ask before purchasing farmland?

Ask about recent production, soil types, irrigation and water rights, existing leases, property taxes, improvements, easements, access, conservation programs, mineral rights, and recent comparable sales. You should also understand any known restrictions or issues affecting the property. AgWest Land Brokers can help buyers ask the right questions and understand the information provided by the seller.


Should I buy irrigated or dryland?

It depends on your goals, location, budget, water availability, and expected return. Irrigated land generally offers greater production potential but may also have higher purchase prices and additional irrigation expenses. AgWest Land Brokers can help you compare irrigated and dryland properties based on their productivity, income potential, and market value.


How important are soil types?

Soil types are one of the most important factors in evaluating farmland because they can affect productivity, crop selection, drainage, and long-term value. Soil maps and productivity ratings can help buyers compare properties. AgWest Land Brokers can help you understand how soil characteristics may affect the value and potential of a farm.


What water rights come with farmland?

Water rights vary by location and property and may include groundwater rights, surface water rights, irrigation wells, certified irrigated acres, or other water-related interests. Buyers should carefully verify the status and limitations of the property’s water rights before purchasing. AgWest Land Brokers can help identify important water-right information and direct buyers to the appropriate regulatory agencies for verification.


How do I know if irrigation wells are good?

Review the well’s age, depth, pumping capacity, water quality, maintenance history, static and pumping levels, electrical or fuel costs, and available well records. Irrigation equipment such as pumps, motors, and pivots should also be evaluated. AgWest Land Brokers can help buyers understand available well information and identify items that may need further inspection.


Can I buy land already under lease?

Yes. Farmland can be purchased with an existing farm or pasture lease. Buyers should carefully review the lease terms, including rent, duration, termination provisions, and possession dates, before purchasing. AgWest Land Brokers can help buyers understand how an existing lease may affect a property purchase.


What happens to tenant agreements after purchase?

The outcome depends on the terms of the existing lease and applicable state law. In many situations, an existing lease remains in effect after a property changes ownership. Buyers should review all leases before closing and consult legal counsel regarding specific rights and obligations.


How do property taxes affect farmland?

Property taxes are an ongoing ownership expense and can affect a property’s overall investment return and operating costs. Tax rates and assessed values vary by location and property characteristics. AgWest Land Brokers can help buyers review available property tax information when evaluating a potential purchase.


What is due diligence for farmland?

Due diligence is the process of investigating a property before completing the purchase. It can include reviewing title, surveys, soils, water rights, wells, leases, taxes, environmental concerns, easements, improvements, and other property records. AgWest Land Brokers can help buyers identify important items to investigate, while qualified professionals can provide specialized inspections and legal or financial advice.


Should I have a survey completed?

A survey may be appropriate when property boundaries, acreage, easements, access, improvements, or legal descriptions need to be confirmed. Whether a new survey is necessary depends on the property and transaction. AgWest Land Brokers can help buyers determine whether a survey should be considered as part of the due diligence process.


How do I determine carrying capacity for pasture?

Carrying capacity depends on factors such as forage type, rainfall, soil productivity, pasture condition, grazing management, and the length of the grazing season. It is typically expressed as the number of animal units a pasture can support for a specific period. AgWest Land Brokers can help buyers evaluate the pasture characteristics of a ranch or grazing property.


What financing programs exist for young producers?

Beginning and young agricultural producers may have access to programs through the USDA Farm Service Agency, commercial agricultural lenders, Farm Credit institutions, and other organizations. Programs can change over time and have specific eligibility requirements. AgWest Land Brokers can help young producers identify properties that fit their goals and provide information to help them begin conversations with agricultural lenders.


Can farmland be purchased through an LLC?

Yes, farmland can generally be purchased through an LLC or other legal entity, depending on applicable laws and the lender’s requirements. Buyers should consider liability, financing, taxes, ownership structure, and estate-planning implications with their attorney and tax professional. AgWest Land Brokers can work with buyers and their professional advisors as they structure a farmland purchase.

Selling Farmland

What is the first step to selling farmland?

The first step is understanding what your land is worth and determining the best strategy for selling it. AgWest Land Brokers can evaluate your property, discuss current market conditions, and help you determine the right approach for your specific situation.


How long does it take to sell farmland?

The time it takes to sell farmland varies depending on the property, asking price, market conditions, and selling method. Some properties sell quickly, while others may take several months or longer. AgWest Land Brokers can help establish a realistic marketing timeline based on your property and goals.


How is farmland sold?

Farmland is commonly sold through a private listing or a public auction. The best method depends on the property, market, seller’s goals, and potential buyer pool. AgWest Land Brokers can help you determine which selling method may work best for your land.


What is the difference between a land auction and a private listing? Which should I use?

An auction establishes a specific date for buyers to compete for the property, while a private listing allows buyers to submit offers during the marketing period. Neither method is best for every property. AgWest Land Brokers can evaluate your land and recommend the selling strategy that best fits your goals and the current market.


How do I know what my farm is worth?

Farmland value is influenced by factors such as location, soil productivity, irrigation, water rights, improvements, access, and current market conditions. A professional land broker familiar with the local market can provide valuable insight into what similar properties are selling for. AgWest Land Brokers can help you evaluate these factors and establish a realistic market value for your property.


Who determines the value of farmland?

Farmland value can be determined through a combination of recent comparable sales, property characteristics, market conditions, and professional analysis. A licensed appraiser provides a formal appraisal, while experienced land brokers can provide a market analysis based on current buyer demand and comparable sales. AgWest Land Brokers can help landowners understand both the market and the factors affecting their property’s value.


What affects farmland value?

Farmland value can be affected by soil quality, location, irrigation, water availability, tillable acres, productivity, access, improvements, recreational features, lease income, and local buyer demand. Market conditions, interest rates, and commodity prices can also influence values. AgWest Land Brokers considers these factors when helping determine a property’s market value.


What documents do I need to sell farmland?

Documents may include the deed, property tax information, existing leases, irrigation and well records, surveys, easements, mineral rights information, and conservation or government program documents. The exact documents needed depend on the property. AgWest Land Brokers can help identify important property information before the land is marketed.


Do I have to pay capital gains tax when selling farmland?

Potentially. The tax consequences of selling farmland depend on factors such as your purchase price, adjusted basis, improvements, depreciation, ownership structure, and how the property has been used. Because tax situations vary, sellers should consult their tax professional before selling. AgWest Land Brokers can work alongside your tax and legal advisors to help you understand the real estate side of the transaction.


Can I sell only part of my farm?

Yes, in many situations, a landowner can sell only a portion of a farm. However, parcel splits may involve surveying, zoning, access, water rights, tax considerations, or county requirements. AgWest Land Brokers can help you evaluate whether selling a portion of your property makes sense and identify potential considerations.


Can I sell land that is rented?

Yes. Farmland can generally be sold while it is under an existing lease. However, the terms of the lease should be reviewed before the property is marketed because the lease may affect the timing, possession, and terms of the sale.


Can I sell land with a tenant still farming it?

Yes. Farmland is frequently sold with a tenant already farming the property. Buyers may value an existing tenant and established lease, but the lease terms should be clearly communicated during the sale. AgWest Land Brokers can help coordinate the sale while taking the existing lease into consideration.


What happens to an existing farm lease when land is sold?

The outcome depends on the terms of the lease and applicable state law. In many cases, an existing lease continues after the property changes ownership, but buyers and sellers should review the lease carefully before closing. AgWest Land Brokers can help identify lease-related considerations, while legal professionals can provide advice regarding specific lease rights and obligations.


Is there a best time of year to sell farmland?

There is no single best time of year to sell every farm. Buyer demand, comparable sales, interest rates, commodity prices, crop conditions, and the property’s existing lease can all influence timing. AgWest Land Brokers can help you evaluate current market conditions and determine when may be the right time to bring your property to market.


How are irrigation systems valued?

Irrigation systems are typically evaluated based on factors such as the type, age, condition, efficiency, capacity, remaining useful life, and replacement cost. The value of irrigation wells, pumps, pivots, and associated equipment can vary significantly from property to property. AgWest Land Brokers can evaluate the irrigation improvements along with the land and water rights when determining overall market value.


What happens to crop insurance when land sells?

Crop insurance generally follows the producer and crop year rather than simply transferring with ownership of the land. The impact of a sale depends on the crop, policy, timing of the transaction, and parties involved. Sellers and buyers should consult their crop insurance agent to understand how a specific sale will affect coverage.


Can I reserve mineral rights when selling?

In some situations, a seller may be able to reserve or retain mineral rights when selling the surface estate. The details should be clearly addressed in the purchase agreement and deed, and legal advice is recommended because mineral rights can have significant implications. AgWest Land Brokers can help identify mineral-right considerations during the marketing and negotiation process.


What closing costs does a seller pay?

Seller closing costs vary by transaction and may include title expenses, recording fees, prorated taxes, brokerage fees, or other transaction-specific costs. The exact costs depend on the purchase agreement and local practices. AgWest Land Brokers can help sellers understand the typical costs associated with their transaction.


How do land brokers market farmland?

Land brokers market farmland through a combination of professional photography, property websites, brochures, email marketing, social media, digital advertising, signage, direct buyer outreach, and traditional agricultural media. AgWest Land Brokers combines these marketing strategies with its knowledge of the agricultural land market to put properties in front of qualified buyers.


Why should I use a land broker instead of selling myself?

A land broker can provide market knowledge, pricing guidance, professional marketing, buyer outreach, negotiation experience, and assistance throughout the transaction. Selling farmland is often a significant financial decision, and having an experienced professional can help navigate the process. AgWest Land Brokers specializes in agricultural real estate and can help landowners develop a strategy specific to their property and goals.


What commission do land brokers charge?

Land broker commissions vary depending on the property, selling method, location, marketing strategy, and terms of the listing agreement. There is not one standard commission that applies to every farmland transaction. AgWest Land Brokers discusses its commission and marketing agreement with each seller before taking a property to market.


What increases farmland value before selling?

Factors such as good soil productivity, irrigation, reliable water, quality improvements, strong access, and well-maintained infrastructure can contribute to farmland value. However, not every improvement will provide a dollar-for-dollar return when the property is sold. AgWest Land Brokers can help you determine which improvements, if any, may make sense before putting your property on the market.


Should I improve my farm before selling?

Not necessarily. Some improvements may increase a property’s appeal and value, while others may not provide enough return to justify the expense. Before investing in improvements, it is worth discussing your plans with an experienced land professional. AgWest Land Brokers can help you evaluate how potential improvements may affect the marketability and value of your property.


What if my farm has CRP acres?

CRP acres can be an important part of a farm’s value and may provide income, conservation benefits, and wildlife habitat. Existing CRP contracts should be reviewed carefully because program requirements and contract terms can affect a sale. AgWest Land Brokers can help buyers and sellers identify CRP considerations and incorporate them into the marketing of the property.


What if my farm has wetlands?

Wetlands can affect how land is used, farmed, developed, or valued. Their impact depends on their location, size, classification, and applicable regulations. AgWest Land Brokers can help identify wetlands as part of the property’s overall characteristics, while qualified environmental or regulatory professionals can provide specific guidance when needed.


How do recreational features affect value?

Features such as timber, ponds, waterfowl habitat, wildlife, hunting opportunities, scenic areas, and recreational access can add value to farmland, particularly when they attract buyers interested in both agricultural and recreational uses. The amount of additional value varies significantly by property and location. AgWest Land Brokers considers both agricultural productivity and recreational potential when evaluating properties.

Nebraska cropland nears $10,000 an acre; Pasture values surge 8%, USDA says

August 3rd, 2026 | RRN Staff | Original Article

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Nebraska cropland continued its steady climb in value during the past year, mirroring a national trend that pushed U.S. agricultural land values to new highs despite softer commodity prices and tighter farm margins.

According to the latest USDA National Agricultural Statistics Service Land Values Summary, Nebraska’s average farm real estate value, which includes land and buildings, increased 4.4% from a year ago to $6,690 per acre. The state remains among the nation’s highest-valued agricultural land markets, trailing neighboring Iowa but well ahead of most of the country.

Cropland values also continued higher. Nebraska’s average cropland value rose 4.2% to $9,560 per acre, while pastureland climbed 8.1% to $4,680 per acre, one of the strongest pasture gains reported nationally.

Irrigated land remains a major driver of Nebraska’s land market. USDA estimated irrigated cropland averaged $12,400 per acre, while non-irrigated cropland averaged $9,000 per acre.

Neighboring states also posted gains.

Iowa, which continues to have the highest average farm real estate value among major Corn Belt states, increased 4% to $22,500 per acre. Iowa cropland averaged $32,900 per acre, while pastureland reached $6,050 per acre.

Kansas farm real estate values climbed 4.9% to $3,200 per acre, with cropland averaging $4,220 per acre and pastureland increasing to $1,560 per acre.

Nationally, the average value of all farmland and buildings reached $4,350 per acre, up 4.3% from 2024. Average cropland increased to $5,830 per acre, while pastureland rose to $1,920 per acre, continuing a multi-year upward trend in agricultural real estate values.

The report is based on USDA surveys conducted this spring and reflects average agricultural land values across the United States.

Highest and Best Use Analysis of Land: What It Is and How It Determines Property Value

Highest and Best Use Analysis

When evaluating land, one concept stands above the rest in determining value, opportunity, and long-term potential: highest and best use analysis.

At its core, this analysis answers a critical question: What is the most profitable and productive use of this land—now or in the future?

For buyers, this means identifying hidden upside. For sellers, it means positioning a property to capture its full market value. Whether you’re looking at farmland, ranchland, or property on the edge of a growing town, understanding highest and best use can completely change how you view a piece of land—especially when browsing farm land for sale in competitive markets.

What Is Highest and Best Use in Real Estate?

Highest and best use refers to: The most reasonably probable use of a property that results in the highest value.

It’s important to understand that highest and best use is not always the current use.

A property might:

  • Be used as pasture today
  • But have significantly greater value as residential development

Or:

  • Operate as dryland farming
  • But become far more valuable with irrigation improvements

The difference between what land is and what it could be is where opportunity—and profit—lives.

What Is a Highest and Best Use Analysis?

A highest and best use analysis is commonly used by professionals in the appraisal industry, including organizations like the Appraisal Institute, to determine the most valuable use of a property.

Rather than guessing, this analysis evaluates the land through a combination of:

  • Physical characteristics
  • Legal constraints
  • Financial feasibility
  • Market demand

The goal is simple. Identify the use that produces the maximum value while remaining realistic and achievable

This process is used by:

  • Land brokers
  • Appraisers
  • Investors
  • Developers

And it plays a major role in both buying decisions and pricing strategy.

The 4 Tests Used in a Highest and Best Use Analysis

To qualify as the highest and best use, a potential land use must pass four key tests.

1. Physically Possible

What can the land realistically support? Resources like the USDA Natural Resources Conservation Service provide valuable soil and land data that can help determine what a property can realistically support.

This includes:

  • Soil quality
  • Topography
  • Access (roads, utilities, water)
  • Climate and drainage

For Example: Flat, fertile ground with access to water may support row crop production, while rough or heavily wooded terrain may be better suited for grazing or recreation.

2. Legally Permissible

What is allowed under current regulations? Environmental regulations enforced by agencies such as the U.S. Environmental Protection Agency can also impact how land may be used or developed.

This includes:

  • Zoning laws
  • Deed restrictions
  • Environmental regulations

For Example: Even if land is ideal for commercial development, zoning may restrict it to agricultural use unless rezoning is approved.

3. Financially Feasible

Will the use generate a return?

This involves:

  • Acquisition cost
  • Development expenses
  • Market demand
  • Comparable sales

For Example: Subdividing land into residential lots may be physically possible—but not financially feasible without strong local demand.

4. Maximally Productive

Which use creates the highest value?

This is the final step, where all factors come together.

For Example: If land can be used for:

  • Grazing ($2,000/acre value)
  • Irrigated farming ($6,000/acre value)

Then irrigated farming would be considered the highest and best use.

Real-World Examples of Highest and Best Use in Land

Understanding theory is one thing—seeing it applied is where it becomes powerful.

Agricultural Land

  • Current Use: Dryland farming
  • Potential Use: Irrigated farming
  • Key Driver: Water access and soil quality

Adding irrigation can significantly increase yield—and land value, especially when evaluating Nebraska farm land for sale or similar agricultural markets.

Transitional Land (Path of Growth)

  • Current Use: Pasture or farmland
  • Potential Use: Residential or commercial development
  • Key Driver: Nearby city expansion

This type of land often sees the biggest jumps in value over time.

Recreational Land

  • Current Use: Hunting property
  • Potential Use: Cabin sites or short-term rentals
  • Key Driver: Location, access, and natural features

Value can increase when land supports multiple income streams.

Why Highest and Best Use Analysis Matters

A highest and best use analysis isn’t just theoretical—it directly impacts real-world decisions. Buyers evaluating Kansas farm land for sale can use highest and best use analysis to identify undervalued opportunities and long-term investment potential.

Determines Property Value

Land is valued based on its potential, not just its current use.

Guides Investment Decisions

Buyers can identify:

  • Undervalued properties
  • Future development opportunities
  • Land with hidden upside

Improves Pricing Strategy

Sellers who understand highest and best use can:

  • Price more accurately
  • Market more effectively
  • Attract the right buyers

Strengthens Land Marketing

Listings that clearly communicate potential uses:

  • Generate more interest
  • Appeal to investors and developers
  • Stand out in competitive markets

How to Perform a Highest and Best Use Analysis

While professional appraisals provide the most reliable results, buyers and sellers can begin evaluating land by following a structured approach.

Step 1: Evaluate Physical Characteristics

  • Review soil maps, topography, and access
  • Conduct a land survey if needed

Step 2: Verify Legal Constraints

  • Check zoning regulations
  • Review deed restrictions and easements
  • Understand environmental limitations

Step 3: Analyze Financial Feasibility

  • Estimate development costs
  • Compare with market values
  • Review comparable land sales

Step 4: Compare Potential Uses

  • Identify multiple possible uses
  • Determine which produces the highest return

Can You Do a Highest and Best Use Analysis Yourself?

Yes—but it requires time, research, and local knowledge.

Successful land buyers and sellers often rely on:

  • Experienced land brokers
  • Appraisers
  • Local planning authorities

This ensures decisions are based on accurate data rather than assumptions

Frequently Asked Questions About Highest and Best Use Analysis

What is highest and best use analysis in real estate?

Highest and best use analysis is the process of determining the most profitable and productive use of a piece of land. It evaluates physical characteristics, legal restrictions, financial feasibility, and market demand to identify the use that results in the highest value.

What are the four tests of highest and best use?

The four tests of highest and best use are: physically possible, legally permissible, financially feasible, and maximally productive. A property must meet all four criteria for a use to be considered its highest and best use.

Is highest and best use always the current use of the land?

No, highest and best use is not always the current use. Land may be used one way today but have greater value if used differently in the future, such as farmland transitioning to residential development.

Who performs a highest and best use analysis?

Highest and best use analysis is typically performed by licensed appraisers, land brokers, and real estate professionals. Investors and buyers may also conduct their own analysis when evaluating land opportunities.

Why is highest and best use important when buying land?

Understanding highest and best use helps buyers identify the true potential of a property. It can reveal opportunities for increased value, better investment returns, and more strategic land use decisions.

How does highest and best use affect land value?

Land value is largely determined by its highest and best use. Properties that support more profitable or in-demand uses typically have higher market values than those with limited or less productive uses.

Can zoning changes affect highest and best use?

Yes, zoning changes can significantly impact highest and best use. If land is rezoned to allow for more intensive or valuable uses, its potential value and development opportunities may increase.

Can you perform a highest and best use analysis yourself?

Yes, but it requires research and local knowledge. Evaluating zoning, market trends, physical characteristics, and financial feasibility can be complex, so many buyers and sellers choose to work with experienced professionals.

What is the difference between highest and best use and market value?

Highest and best use determines the most valuable potential use of a property, while market value is the price a buyer is willing to pay. The two are closely related, as market value is often based on the property’s highest and best use.

Final Thoughts: Look Beyond What the Land Is Today

One of the biggest mistakes in land real estate is evaluating property based only on its current use. If you’re currently exploring farm land for sale, applying a highest and best use analysis can help you identify properties with the greatest upside and long-term value.

The real opportunity lies in asking: What could this land become?

A well-executed highest and best use analysis allows you to:

  • Make smarter investments
  • Maximize property value
  • Identify opportunities others overlook

Whether you’re buying, selling, or simply evaluating land, understanding highest and best use gives you a clear advantage in the market.

Profit vs Purpose: The Future of Nebraska Land

By Nebraska Farmers Network | Published March 17, 2026 | See Here

Nebraska land has been of particular interest for investment-minded land buyers in recent years. High land values and strong long-term returns make it appealing to capital, often putting local producers at a disadvantage in ownership and management.

Nebraska land offers something many other states do not, from its geographical advantages to the rich farming and ranching culture that has shaped the state’s history. In light of these factors, a clear solution emerges: preserving what makes this land special requires Nebraskans who understand it from both perspectives and are committed to long-term stewardship. 

The Investment Perspective

From a buyer’s perspective, Nebraska land has a lot to offer, from the land’s productivity itself to the resources at hand. Nebraska’s existing agricultural infrastructure enables lower transportation costs for inputs and outputs, thanks to its central location and strong highway and rail connections. 

Water is another key factor. Reliable rainfall supports healthy grasslands, while access to the Ogallala Aquifer provides a critical irrigation resource across much of the state. While other regions have faced declining aquifer levels, Nebraska has maintained relatively stable access, offering long-term security for agricultural production. That reliability is a major consideration for investors focused on consistent returns.

Nebraska’s diverse landscape also supports a wide range of agricultural operations, from row crops to cattle and hay production. This flexibility allows buyers to align land purchases with their specific goals. Although land values have decreased slightly over the past year, the broader trend over the last five years shows steady appreciation. This reinforces the fact that investment in Nebraska land will ultimately lead to profit. 

The Local Perspective

For Nebraskans, these advantages are nothing new. Generations of farmers and ranchers have built their lives around the land, understanding its value in ways that go far beyond financial return.

Here, land is deeply tied to identity, community, and purpose. Strong rural communities depend on the success of agriculture; when farmers and ranchers thrive, local economies follow. According to a 2021 USDA report, a higher rate of absent agricultural landowners in an area corresponds to a lower local employment rate, underscoring the importance of local ownership to community vitality.

Nebraska producers view their operations as more than an asset, but as their livelihoods and responsibilities. The dedication required to operate a successful farm or ranch leads to a deep appreciation for the land. That perspective drives long-term decision-making, from protecting soil health to maintaining productivity for future generations. Stewardship isn’t a strategy; it’s a way of life.

For them, land ownership is not a strategic investment, but instead their purpose. The task of feeding the world is no small feat, and Nebraska farmers and ranchers take this in stride by focusing on long-term gain over short-term profits. The key is a love of the land, something created on the land itself, not for profit.

The Conclusion

Investment-focused land buyers have every reason to be interested in Nebraska’s valuable land. This value, however, will be better maintained by those who truly love the land and are committed to caring for it long term. Local land management will allow Nebraska to prosper for years to come.

Sources: https://www.swanlandco.com/2025/03/18/selling-nebraska-farm-ranch-property/#:~:text=Irrigation%20Advantages%20and%20Multi%2DCropping,factor%20for%20long%2Dterm%20investment

https://www.landboss.net/post/pros-and-cons-of-buying-land-in-nebraska

https://flatwaterfreepress.org/whos-buying-nebraska-corporations-investors-grabbing-giant-chunks-of-nebraska-

https://flatwaterfreepress.org/whos-buying-nebraska-corporations-investors-grabbing-giant-chunks-of-nebraska-farmland/#:~:text=Absentee%20landowners%20have%20an%20opportunity,for%20Rural%20Strategies%20and%20Grist

Nebraska Ag Land Values Decline For Second Consecutive Year

By Ryan Evans | Published March 18, 2026 | UNL.edu

The value of agricultural land in Nebraska declined 1% over the past year to an average of $3,905 per acre as of Feb. 1, according to the preliminary report from the University of Nebraska–Lincoln’s 2025-26 Farm Real Estate Market Survey. It is the second consecutive year of declining land values since the market reached $4,015 per acre in 2024.

The survey’s preliminary report was published March 18 by the university’s Center for Agricultural Profitability, based in the Department of Agricultural Economics. It provides current estimates of agricultural land values and cash rental rates, broken down by region and land class across Nebraska.

Land industry professionals who participated in this year’s survey attributed the decline to lower crop prices, higher farm input costs and prevailing interest rates.

“Many operations are facing tighter liquidity as crop revenues decline while input costs remain elevated,” said Jim Jansen, extension agricultural economist who leads the annual survey and report. “Those conditions are leading producers and lenders to take a more cautious approach when navigating these financial pressures.”

Crop receipts in Nebraska declined by about $576.6 million, or 16%, in 2025 as corn prices fell and soybean and wheat production dropped. Those losses were partially offset by a $3.22 billion increase in livestock receipts statewide. Jansen said the differences in crop and livestock profitability were reflected in land value trends across the state.

The report found cropland values generally declined across Nebraska over the past year as tighter crop margins weighed on land markets. Center pivot irrigated cropland averaged 2% lower statewide, while gravity irrigated cropland declined 3%. Dryland cropland with irrigation potential fell 2%, and dryland cropland without irrigation potential decreased 1%. In contrast, grazing land and hayland values increased between 4% and 7% as strong cattle prices supported demand for pasture acres.

Average cash rental rates in Nebraska followed a similar trend. Rental rates for dryland and irrigated cropland declined between 1% and 9% across the state, reflecting lower commodity prices and tighter margins for crop producers. In contrast, rental rates for pasture and cow-calf pairs increased about 4% to 5% compared with the previous grazing season.

“Flexible lease provisions can help landowners and tenants manage production and price risk when margins are tight,” Jansen said. “Factors such as crop prices, input costs and drought conditions all play a role in how lease agreements are structured.”

The Nebraska Farm Real Estate Report is available on the Center for Agricultural Profitability website at https://cap.unl.edu/realestate

Two virtual workshops covering 2026 land values, cash rental rates and leasing strategies will be held March 24 and 26. Registration is free at the webpage above.

The Nebraska Farm Real Estate Market Report is the product of an annual survey of land professionals, including appraisers, farm and ranch managers and agricultural bankers. Results are divided by land class and agricultural statistics district. Land values and rental rates in the report are averages of survey participants’ responses by district. Actual land values and rental rates may vary depending on the quality of the parcel and local market for an area. Preliminary land values and rental rates are subject to change as additional surveys are returned. The final version of the report will be published in July.