Date of this Version
Cornhusker Economics, March 8, 2000, agecon.unl.edu/cornhuskereconomics
Despite the generally poor commodity prices during most of 1999, the markets for agricultural land remained relatively unchanged in terms of value levels and cash rental rates. Preliminary results from the February 1, 2000 UNL land market survey indicate a state all-land average value of $696 per acre, less than a 1 percent increase from 12 months earlier (Figure 1 and Table 1). For the state as a whole, the various classes of cropland moved slightly in both directions of year-earlier levels, with the 12-month changes being hardly more than the recent daily gyrations of the stock market. And though some areas of the state experienced somewhat larger declines, none were more than 10 percent – the level considered by stock market analysts as a market correction. Clearly, depressed crop commodity prices toned down local markets for cropland; but survey reporters also noted the countervailing influence of the federal farm program payments which helped cash flow conditions during the year.