New Report Shows Nebraska Farmland Value Continues to Decline

January 11, 2019 - 12:39pm

The Farm Credit Services of America has released its six-month report on farmland values for Nebraska, revealing a continuing decline in land value for much of the state.


The report showed a one-percent decrease in Nebraska farmland value since July, following a trend that has seen farmland value decline by nearly 14 percent over the last five years. South Dakota, Iowa and other agricultural states have shown similar declines.

Jim Jansen, who is an agricultural economist with the Eastern Nebraska Research and Extension Center, said lower commodity prices coupled with the potential for increased interest rates on long-term property loans are partly to blame for declining land value.  

“The fundamentals of what’s important to land industry in terms of value – I’ll go back to the value of livestock, the value of crops – for the short term, for the next several years, appears to be fairly soft," Jansen said. "That being said, I would anticipate the value to gradually continue to decline.”

While Nebraska farmland values are slowly declining in recent years, the Farm Credit Services of America report shows values in the state are still up over 100 percent in the last 10 years.

 

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