UNL Releases Preliminary 2022 Farm Real Estate Market Survey Results

Jim Jansen, Jeff Stokes, and Jessica Groskopf

The market value of agricultural land in Nebraska increased by 16% over the prior year to an average of $3,360 per acre, according to the preliminary results of the 2022 Nebraska Farm Real Estate Market Survey. The University of Nebraska-Lincoln's Department of Agricultural Economics annually surveys land industry professionals across Nebraska, including appraisers, farm and ranch managers, agricultural bankers, and related industry professionals. Results from the survey are divided by land class and summarized by the eight Agricultural Statistic Districts of Nebraska.

The 2022 Survey revealed that Northwest Nebraska agricultural land values were higher for the reporting year ending February 1, 2022. The Northwest region includes Banner, Box Butte, Cheyenne, Dawes, Deuel, Garden, Kimball, Morrill, Scotts Bluff, Sheridan and Sioux counties. The average farmland value in the region is estimated to be $825 per acre. This is 15% higher than the previous year. 

The eight major types of land reported in the survey and the average value of each type for the Northwest region is reported in table 1. Table 2 shows the reported cash rental rates for various types of land. Values are reported in dollars per acre, unless otherwise noted. Actual agricultural land values or rental rates for an individual parcel will vary from reported figures depending on quality attributes and local market forces of the area. 

As part of the annual survey, land industry professionals reported the rise in Nebraska agricultural land values were attributed to higher commodity prices, interest rates near historic lows, hedging against inflation, and a renewed use in 1031 exchanges. The financial position of many operations improved over the prior year despite rising machinery costs and input expenses. Current interest rate levels created a strong market as investors turned to land as a tangible investment as a hedge against in­flation. Survey participants indicated crop prices as the major factor leading to the growth in rental rates. 

To view the complete report visit: https://cap.unl.edu/realestate or contact Jessica Groskopf, 308-632-1247, jgroskopf2@unl.edu