The slump in crop and livestock prices was “the most negative factor for the second year in a row,” with Nebraska farmland values down by an average 4 percent this year, said the University of Nebraska. The decline, to $3,115 an acre, lowered the value of land and buildings by $5.8 billion, to $132 billion, said the annual report.
The all-land value for Nebraska peaked at $3,315 in 2014 and slipped to $3,250 last year, a 2 percent drop, and fell again this year. The report was based on the work of a panel of 100 experts, such as land appraisers, farm managers and farm lenders, engaged in agricultural land and rental markets. Nebraska is a powerhouse in corn, soybean, cattle and hog production.
“Panel members indicated that a multi-year period of lower commodity prices might lead to further declines in the average value of land in the state,” said the report. “The ability of new owners to purchase and finance land at low long-term interest rates remains a positive factor in maintaining current land prices from falling any further according to panel members.”