Nebraska Farm Real Estate Report

Nebraska Farmland Values and Cash Rental Rates

2023 Preliminary Results

2023 Survey Highlights

• The statewide all-land average value for the year ending February 1, 2023, averaged $3,835 per acre, about a 14% increase over the prior year.

• The survey attributes the rise in agricultural real estate values to higher commodity prices, purchases for operation expansion, favorable financial situations for current owners and an increase in buyers acquiring land as a hedge against inflation.

• Dryland cropland with irrigation potential experienced the largest statewide increase on cropland, up 16% for all land classes. Increases between 17% and 21% led the category in the northeast, southwest and southeast districts.

• The estimated value of dryland cropland without irrigation potential rose by 13% across the state, with the largest gains — between 15% and 21% — reported in the northwest, south and southeast districts.

• Center pivot irrigated cropland averaged 13% higher, with the northeast, east and southeast regions leading Nebraska in market value increases between 14% and 19%. The value of gravity irrigated cropland rose by 12% across the state, including gains between 14% and 20% in the east and south regions.

• The gain in statewide grazing land and hayland market values ranged from 14% to 17%. Hayland led at 17%, as operators competed for additional acres during expansive drought across the state. Nontillable grazing land followed hayland with an increase of 15%. Major grazing regions in the northwest, north, central and southwest led the gains, ranging from 13% to 20%. Cow-calf producers competed for grazing properties during the drought and tillable grazing land also trended higher at 14% across the state.

• Cash rental rates for dryland cropland rose between 7% and 11% across the state, which survey responses attributed to challenges related to drought, input expenses and water availability. Pasture and cow-calf pair monthly rental rates trended steady-to-higher across Nebraska, rising between 6% to 7% over the previous grazing season.