Survey: Nebraska Ag Land Values Up for First Time Since 2014

A new survey shows for the first time since 2014, the value of agricultural land in Nebraska went up this year. But with the effects of the coronavirus pandemic, it could head down again.

The news about ag land prices turning around is contained in a new report by the University of Nebraska’s Institute of Agriculture and Natural Resources. The report’s lead author, ag economist Jim Jansen, describes the turnaround.

“Starting in 2014 we reported a decline in the market value of land – approximately 20 percent over a 5-year period or so. And leading into 2020, we’ve seen a reversal in that decline in land values,” Jansen said.

The report says ag land values increased 3 percent, to a statewide average of $2,725 per acre. But those values are based on a survey taken every year on February 1, before the coronavirus pandemic hit Nebraska.

Jansen says with uncertainty over commodity prices and government policy, the turnaround may be short-lived.

“The effect that these things have on farm-level finances will probably trickle into possibly lower values once again for land values as well as cash rents,” he said.

Jansen says many rental prices for land this year were set before the economic shocks brought on by COVID-19, and both landlords and tenants might consider changing those contracts.

“A land tenant that makes a landlord money is one that’s profitable. And that’s a challenge a lot of people are facing right now,” he said.