The Columbus Telegram from Columbus, Nebraska (2024)

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THE COLUMBUS TELEGRAM WEEKEND, MARCH 25-26, 2023 C3 UNL CROPWATCH The market value of agricul- tural land in Nebraska increased by over the prior year, to an average of $3,835 per acre, ac- cording to the University of Ne- 2023 Nebraska Farm Real Estate Market Survey preliminary report. This marks the second-largest increase in the market value of agricultural land in Nebraska since 2014 and the highest non-inflation-ad- justed statewide land value in the 45-year history of the survey. The report is issued annually by the Department of Agricultural Economics and Center for Agricultural Prof- itability, based on a survey of land industry experts across Nebraska, including apprais- ers, farm and ranch managers, agricultural bankers and other industry professionals. The survey attributes the rise in agricultural real estate values to higher commodity prices, purchases for operation expan- sion, favorable financial situa- tions for current owners and an increase in buyers acquiring land as a hedge against inflation. Increases in crop and livestock prices contributed to a net farm in- come of over $8 billion in Nebraska in 2022, even as expenses for inputs like fertilizer and fuel increased by over $3 billion over the prior year in the state.

But record-low interest rates at the beginning of 2022 rose to their highest points this decade by the end of the year. This may im- pact agricultural real estate markets in the coming year according to Jim Jansen, an agricultural economist who co-authors the survey and report. policy in 2022 created a dynamic period as the Federal Reserve raised interest rates to combat inflation. Inter- est expenses for land loans grad- ually rose over the prior year and into 2023 as the Federal Reserve continues policies to decrease Jansen said. He added that low interest rates on loans early on in 2022 and concerns about inflation fueled demand for investment in land, a tangible asset that helps to hedge purchasing power, not- ing that operators and investors use land purchases when eval- uating hedges against inflation and grow farms and ranches.

The survey reports market values on seven types of land by region across Nebraska, as well all-land average values for the entire state. Dryland cropland with irrigation potential expe- rienced the largest statewide increase on cropland, up for all land classes. Increases be- tween and led the cate- gory in the northeast, southwest and southeast districts. The es- timated value of dryland crop- land without irrigation poten- tial rose by across the state, with the largest gains between and reported in the northwest, south and southeast districts. Center pivot irrigated crop- land averaged higher, with the northeast, east and south- east regions leading Nebraska in market value increases between and The value of grav- ity irrigated cropland rose by across the state, including gains between and in the east and south regions.

The gain in statewide grazing land and hayland market values ranged from to Hay- land led at as operators competed for additional acres during expansive drought across the state. Nontillable grazing land followed hayland with an increase of Major grazing regions in the northwest, north, central and southwest led the gains, ranging from to Cow-calf producers competed for grazing properties during the drought and tillable grazing land also trended higher at across the state. Cash rental rates for dryland cropland rose between and across the state, which sur- vey responses attributed to chal- lenges related to drought, input expenses and water availabil- ity. Pasture and cow-calf pair monthly rental rates trended steady-to-higher across Ne- braska, rising between to over the previous grazing season. drought in major grazing land areas poses a threat if we see additional rainfall this upcoming grazing Jansen said.

cash rental negotiations should include early removal provisions when accounting for drought consid- The 2023 Nebraska Farm Real Estate Market prelim- inary report is available on the Center for Agricultural Profit- website, unl.edu/realestate. The final re- port is expected to be published in June. 2023 Farm Real Estate Report Published: Nebraska Land Values Up BUSINESS Kristin Scheele, Au.D, CCC-A BCHCC AUDIOLOGY Diagnostic Screening Hearing Exams Hearing Aid Fitting Programing Hearing Aid Repairs Custom Hearing Protection Musician Plugs Aural Rehabilitation Cochlear Implant Evaluation Follow Up Tinnitus Auditory Processing Assessments Newborn Hearing Screening Follow-up 320 10th Street David City, NE 402-367-1340 www.Super-Saver.com 3318 23rd Street Open 24 hours per day 7 days per week. SUPER SAVER Free in-town Pharmacy delivery 402-563-3349 COLUMBUS 210 East 23rd Street, 402.562.8936 2661 33rd Avenue, 402.562.8935 Nebraska is adventure, where excitement is in the simple things..

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