According to the 2020 Nebraska Farm Real Estate report, Nebraska’s all-land average value for the year ending Feb. 1, 2020, averaged $2,725 per acre, or about a 3% increase to the prior year’s value of $2,645 per acre. This marks the first year-to-year increase since land values in the state peaked at $3,315 per acre in 2014.
|Land Type||$/Acre||% Change|
|All Land Average||2,725||3%|
|Center Pivot Irrigated Cropland||6,125||3%|
|Gravity Irrigated Cropland||5,755||1%|
|Dryland Cropland (Irrigation Potential)||4,140||3%|
|Dryland Cropland (No Irrigation Potential)||3,165||4%|
|Grazing Land (Tillable)||1,240||5%|
|Grazing Land (Nontillable)||830||4%|
Predictions for the rest of 2020 are that we don’t know the true economic impact of Covid-19 on the land real estate market but expect to see a migration of investors away from the volatility of the stock market and into an asset class that has more stability. Investors who have never considered farmland before are now scrutinizing this alternative asset class. The market will continue to hold strong and the supply of good cropland for sale remains lower, and demand is more than adequate to support steady to slightly higher land prices.