The Center for Agricultural Profitability (CAP) at the University of Nebraska reports the average value for agricultural land in Nebraska is lower this year compared to last year. This year’s average value, $3,935 per acre, is 2% less than last year’s record-setting $4,015 per acre. The weakening comes after five consecutive years of climbing values. The figures come from CAP’s annual survey of land appraisers, farm and ranch managers, agricultural bankers, and other real estate professionals.
Land values were off across all regions except the Northwest where the average value rose 1% (Figure 2). The declines were most pronounced in the Northeast and East where values fell by 3%. These regions are dominated by crop production, thus lower commodity prices and deteriorating profitability in crop production likely prompted the softening land prices.