The University of Nebraska – Lincoln’s Cornhusker Economics has recently published their review of the 2015 trends in Nebraska farmland values and rental rates.
For the first time in recent years, overall Nebraska farmland values decreased by approximately 3%, or a valuation of $3,210 per acre. More specifically, the statewide numbers show:
- Dryland cropland with irrigation potential declined the most, at 10%, for a valuation of $4,740 per acre
- Dryland cropland with no irrigation potential declined 9%, for a valuation of $3,385 per acre
- Gravity irrigated cropland decreased 4%, for a valuation of $7,005
- Center pivot irrigated cropland decreased 2%, for a valuation of $7,495
Unsurprisingly, pastures and cow-calf pair rental rates increased about 15% across the state due to higher cattle prices and drought assistance via the Livestock Forage Disaster Program. Interestingly:
- The big mover is hayland, up 20%, for a valuation of $2,350
- Tillable grazing land is up 7%, for a valuation of $1,490 per acre
- Nontillable grazing land is up 12%, for a valuation of $970 per acre
Rental rates reflect the above changes in valuation. Cropland rental rates are down across the state, with two exceptions: dryland cropland in central Nebraska (increase of 5%) and center pivot cropland in northeast Nebraska (increase of 1%). Pasture rental rates are up, ranigng from $85 in the northeast to $11 in the northwest. Both central and southwest Nebraska are up 34% ($40 and $27 respectively).
Rental rates for cow-calf pairs tracks the grazing land numbers. Average dollar per pair is $60, up 40%.
More information is available in the article but, all things considered, the valuation decrease does not erase the gains made in previous years. Moreover, the increase in the cattle market is directly responsible for the increase in pasture and cow-calf pairs.
If you have further questions, you are welcome to contact us!
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!
Another week down! I hope everyone had a productive week. For your weekend reading pleasure:
There are many paths for beginning farmers to enter the profession. In that vein, Dakota Rural Action is offering its Farm Beginnings class in Rapid City this year; classes begin in November. Spots are limited so sign-up if interested.
The University of Nebraska – Lincoln’s Cornhusker Economics has an interesting article on tools for long-term decisions and management for cattle operations.
How much is a bale of hay worth this year?
Farmland prices have hit the tipping point?
Using goats for fuels reduction in Cleveland National Forest. Looks like a promising experiment.
Finally, need a simple side dish this weekend? Balsamic Grilled Baby Carrots may be just the thing.