2013 Nebraska Agland Market Highlights. by Bruce Johnson UNL Department of Agricultural Economics firstname.lastname@example.org. The Market in a Nutshell “A $ 7 Corn Land Market With $ 5 Corn on the Horizon”. Recent History:. Land Boom Conditions. Nebraska at the “Epicenter”
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2013 Nebraska Agland
UNL Department of
The Market in a Nutshell
“A $7 Corn Land Market
With $5 Corn on the Horizon”
Land Boom Conditions
Nebraska at the “Epicenter”
of the U.S. Land Boom
Agricultural Land Markets up Across
the Country, but Nebraska And Neighboring
States Leading the Nation
0 5 10 15 20 25 30 35 40
Rank / State
USDA Farmland Value Percentage Changes
6/1/2011 – 6/1/2012
Source: Economic Research Service, U.S. Department of Agriculture
The Current Market
Nebraska Land Values Climb 25% in Past 12 Months
2013 Values and Recent Trends by Land Class in Nebraskaa
a Source: Annual February 1st UNL Nebraska Farm Real Estate Market Surveys.
b Value of pivot not included in per acre value.
Sharp Upward Advances Across the State
2013 Nebraska Farmland Values and Recent Trends
by Sub-State Region
Source: Annual UNL Nebraska Farm Real Estate Market Surveys.
Agricultural Land Values
2013 Nebraska Values Adjusted For Inflation At New Heights!
Key Land Boom Drivers
#1 Record-Shattering Farm Income Levels
Key Land Boom Drivers
Historically Low Interest Rates
Farm Income Levels
Estimated Net Rate of Return on Investment: Selected Years
0 1 2 3 4 5 6
Source: UNL Nebraska Farm Real Estate Market Developments Survey Series
Value–to–Cash Rent Ratio
Climbing into New Territory!
Value-to-Cash Rent Multiple For Eastern Nebraska Center Pivot Cropland, 1981-2012P
What’s On The Horizon?
Increasing Input Costs?
Cash Rent Market Trends More Moderate
Are Tenants Taking on
Too-High of Rents?
Depends on 2013 Commodity
Prices and Yields
If Paid $350/AC for Irrigated and $220/AC Dryland Cropland
If Paid $350/AC For Irrigated
and $220/AC Dryland Cropland
The Boom Years May Be Over
Real Estate Meltdown Unlikely
--But Some Readjustment
on the Horizon
Corn Price In:
Weather Patterns In: