A recent report from the University of Nebraska indicated that, “Marking the second consecutive year of value declines, the all-land category across the entire State of Nebraska for the year ending February 1, 2016 averaged about 4 percent lower than the prior year. Figure 2 summarizes these averages along with the percent changes over last year’s all-land average for the eight districts of the state.”
The report stated that, “Current crop prices once again were listed as the most negative factor for the second year in a row by panel members leading to the decline in land values across Nebraska. Additional concern amongst panel members indicated property taxes may have a negative bearing on the value of agricultural land, depending upon future policies.”
“The ability of new owners to purchase and finance land at low long-term interest rates remain a positive factor in maintaining current land prices from falling any further according to panel members. Historically, periods in Nebraska agricultural real estate when the cost of financing new purchases increases the value of agricultural property tends to act inversely.”
The Universty of Nebraska report added that, “The outlook on land values for 2016 turned considerably more negative according to panel members with the decline in commodity prices. Current crop and livestock prices rank among the top five factors weighing down agricultural land values in Nebraska.”
