Agricultural Economics Department


Date of this Version

August 2004


Published in Cornhusker Economics, 08/18/2004. Produced by the Cooperative Extension, Institute of Agriculture and Natural Resources, Department of Agricultural Economics, University of Nebraska–Lincoln.


Early work in agricultural land appraisal emphasized several factors contributing to the value of agricultural land. These included productivity, building quality, location, adjoining road quality and other factors. Irrigation potential also came to be important and more recently, recreational factors and urban development have become important in explaining land values. Productivity gained in importance over time as the underlying force, although the remaining factors still are considered in explaining value differences among tracts. The reliance on productivity is the focus of this article, and other influences on land values such as urban development potential are not considered, even though they may strongly impact land tracts in particular locations.