A report was just released today regarding the current Land Values in Nebraska. The report: "2015 Nebraska Farmland Values and Rental Rates" was written by the University of Nebraska-Lincoln Institute of Agriculture and Natural Resources, Agriculture Economics division. I will simply refer to them for this article as IANR.
The report can be seen here:
(I apologize in advance if you have to cut and paste the article.)
The IANR report includes information on lease rates and cow/calf pastures rates.
Take the information for what it is worth to you and please remember that one large sale from this year or last year can easily skew an average "value". Farms sell that have all kinds of soil type, drainage issues, and varying terrain that can have a major impact on the value of each farm and its sales price or rent value.
Other factors that can create price fluctuations on a report like this include whether the property sold is owned locally or is an investment and whether there was heavy or light competition for the ground when sold.
An example of this: In the spring of 2015, in the Loup Valley area, a very nice quarter of ground was offered at Public Auction. Farmer X had leased this investor owned property for years. He gets along with all of his neighbors. None of the local farmers bid against Farmer X. If a potential buyer from 15 miles away had not bid...the property would have sold for the opening bid...as it was it still sold to Farmer X for at least $1,000/acre BELOW market value.
I must admit that I am never a huge fan of these type of reports as they are formulated by using self reporting information gathered from various individuals around the state. But it is strictly voluntary.
In other words...if I or other Brokers, Appraisers, Farm Managers, do not report our sales or rental numbers to IANR...those are not necessarily included in the formulation. However, it is impossible to know, as you will see, the report does not give us any indication on the quantity of transactions or acres involved or from whom the numbers came from.
So why am I sharing the report then? Because IANR does give an indication in some areas of what is happening versus previous years and even in its current form, is better than not having any reports available. Personally, I prefer to look at a local geographic area versus a regional area like this report as the land changes so much in terrain and farmability within each of the regions.
If you would like to know what rents or land values are in your neck of the woods...call or text or email...or send a letter...or knock on my door...Until Next Time .... This is Mike McCann - Nebraska Land Broker!!
Mike is a Nebraska Land Broker, Land Auctioneer, and Farm Manager throughout Nebraska!!
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