The University of Nebraska – Lincoln, via Cornhusker Economics, has released preliminary results for the 2014 Nebraska Farmland Valuation. As many likely suspected, valuations did not drastically increase in 2013 and early 2014, unlike previous years.
In general, the average value of Nebraska farmland was generally up across the state, with one exception. The state average is up 5%, with the central region the highest at 12% gain. The only region with a decrease was the east region at -1% growth.
The preliminary report also discusses different classes of farmland. Across the state, the increase for non-tillable grazing land at 7%. Not surprisingly, this is related to increasing and record-high cattle prices.
Dryland cropland values varied across the state, depending upon region and potential for irrigation. What I find interesting is that for the western two-thirds of the state, increases in valuation commonly ranged around 20%.
Many will also not be surprised in the difference in valuation between gravity irrigated and center pivot irrigated cropland. Across the irrigated farmland class, valuations ranged from -2% to almost 20%. Weighting the averages across the state, a 4% increase was seen across gravity and center pivot irrigated cropland.
Take a look at the report — it is interesting. It also discuss cash rental rates, so if you are a tenant, the report has pertinent information for you. (For example, for the majority of districts, cash rental rates have declined from 5% to 15% from 2013.)
There’s something for everyone in there and when the full report is released, we’ll let you know!