The February 1, 2023, Nebraska all-land average value of $3,835 per acre marks a 14% increase from the prior year. This marks the second-largest increase in the market value of agricultural land since 2014 and the highest non-inflation-adjusted statewide land value in the survey’s history.
Results are published by region and land type below.
The statewide all-land average value for the year ending February 1, 2023, averaged $3,835 per acre, or about a 14% ($475 per acre) increase from the prior year’s value of $3,360 per acre.
Rates of increase were the highest in the northeast, east, and southeast districts, as these areas averaged 15% to 17% higher than the all-land average. These districts trended slightly higher than the rate of increase of 14% for the state.
Western regions of Nebraska, including the northwest, north, central, southwest, and south districts, reported smaller increases ranging between 10% to 13%. The central district reported the smallest increase at 10%. Overall, increases across the state range from 10% to 17% in 2023.
Panel members reported in 2023 that current crop prices, purchases for farm expansion, and non-farmer investor interest in land purchases as major economic forces guiding the market value of land higher across the state. Current crop prices and the financial health of current owners as additional positive forces.
The outlook for future gains in farm real estate values remains relatively strong as only four economic forces were noted as somewhat negatively impacting farm real estate values. Interest rate levels, property tax levels, farm input expenses and future property tax policies were reported as weighing down on the market.
Based on 2023 market values, Nebraska’s estimated total value of agricultural land and buildings rose to approximately $191.8 billion. Between 2022 and 2023, the market value increase in agricultural land and buildings totaled about $23.8 billion.
Values by Region
Land Type
$/Acre
%Change
All Land Average
3,835
14
Center Pivot Irrigated Cropland
8,760
13
Gravity Irrigated Cropland
7,905
12
Dryland Cropland (Irrigation Potential)
6,070
16
Dryland Cropland (No Irrigation Potential)
4,395
13
Grazing Land (Tillable)
1,680
14
Grazing Land (Nontillable)
1,090
15
Hayland
2,210
17
Due to the inherent limitations of this survey, the information in this report should not be used to set a specific rental rate or value a particular parcel of real property for sale or property taxes, security for a loan, and other related legal matters.
Central
Land Type
$/Acre
% Change
All Land Average
4,210
10
Center Pivot Irrigated Cropland
8,895
10
Gravity Irrigated Cropland
7,235
3
Dryland Cropland (Irrigation Potential)
4,255
10
Dryland Cropland (No Irrigation Potential)
3,830
8
Grazing Land (Tillable)
2,620
21
Grazing Land (Nontillable)
2,030
20
Hayland
2,605
17
Land Type
$/Acre
% Change
Center Pivot Irrigated Cropland
305
11
Gravity Irrigated Cropland
270
10
Dryland Cropland
135
12
Pasture
46
13
Land Type
$/Month
Cow-Calf Pairs
66.70
Counties: Buffalo, Custer, Dawson, Greeley, Hall, Howard, Sherman, Valley
The Nebraska Farm Real Estate Market Survey is an annual survey of land professionals, including appraisers, farm and ranch managers, and agricultural bankers. It is conducted by the Center for Agricultural Profitability, which is based in the Department of Agricultural Economics at the University of Nebraska-Lincoln. Results from the survey are divided by land class and agricultural statistic district. Land values and rental rates presented in the report are averages of survey participants’ responses by district. Actual land values and rental rates may vary depending upon 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.
Click here to read the full article on the University of Nebraska Lincoln website.
