Agricultural Economics Department
Date of this Version
2023
Document Type
Article
Citation
Nebraska Farm Real Estate Market Highlights 2022-2023 by Jim Jansen and Jeffrey Stokes (2023).
Abstract
For the fourth consecutive year, the all-land average value in Nebraska rose for the year ending February 1, 2023, averaging about 14% higher than the prior year. Figure 2 summarizes these figures and trends along with the percent changes over the preceding year’s all-land average for the eight districts in the state.
The Nebraska Farm Real Estate Market Highlights 2022-2023 report represents the 45th edition of the annual series. These reports provide essential insight into agricultural land market dynamics for stakeholders across Nebraska. In today's market, where market transactions exceeding $1 million are the norm, objective market information and analysis are more critical than ever. The report focuses on providing unbiased information for agricultural land values and rental rates so industry participants can make educated and informed decisions.
This year, the February 2023, survey of nearly 197 expert panel members from across the state provided current information and insight regarding their areas' agricultural land market conditions. The panel members have been selected based on being actively engaged in agricultural land markets as certified agricultural appraisers, professional farm managers, agricultural lenders primarily focused on agricultural land transactions, and other professionals involved in the Nebraska agricultural land industry due to the inherent nature of their positions. The majority of panelists participating in the survey have reported annually for a considerable number of years, providing valuable historical consistency and context to the agricultural land values and rental rates.
Based on their knowledge of the market activity, reporters provide point-in-time estimates of current agricultural land values and cash rental rates for a variety of land types and classes. Comparing these current measures against previous years’ results provides important trend analysis. The appendix in this report includes the historical UNL data series for Nebraska agricultural land values dating back to 1978, the agricultural cash rental rate series dating back to 1981, and the USDA historical all-land value series.
In addition to the point-in-time estimates, panel members provide details regarding actual sales transactions occurring over the previous 12 months. This year, the panel provided information on 738 sales that were considered representative of the recent agricultural land market. This gives insight into the characteristics of recent sales and benchmark indicators for studying trends. Changes in the nature of market participants engaged in land transactions from year to year may also be ascertained from evaluating this information.
Comments
Copyright © 2023 Jim Jansen and Jeffrey Stokes. Used by permission.
Disclaimer: Due to the inherent limitations of this survey, information in this report should not be used to set a specific rental rate or value a particular parcel of real property for sale or property taxes, security for a loan, and other related legal matters.