Unlocking the Value of Nebraska Farmland: A Comprehensive Guide to Current Land Prices and Expert Insights - April 2024 Report
Welcome to Our Monthly Nebraska Farmland Value Report
In this monthly report, Jason Smith, Nebraska Land Broker and Auctioneer dives into Nebraska farmland values, helping you understand the factors that determine what your farm is potentially worth. Our goal as auctioneers and farmland real estate agents is to provide you with up-to-date information, recent sales data, expert insights, and tips for maximizing the potential value of your farmland sale. Let us answer the questions you have about selling farmland in Nebraska. Contact us today for a free consultation. You can reach us by phone at 402-739-8696.
Jason J Smith, Auctioneer
515-537-6633
Lawmakers Modernize Foreign Land Ownership Restrictions in Nebraska:
On April 11, Nebraska lawmakers passed a measure, LB1301, to update and modernize restrictions on foreign ownership of land in the state. The bill aims to enhance scrutiny and impose restrictions on land ownership by foreign individuals or companies.
Key provisions include:
- Increased scrutiny for individuals and entities on the sanctions list of the federal Office of Foreign Assets Control or those identified by the U.S. Secretary of Commerce as threats to U.S. national security.
- Mechanisms for reporting suspected foreign ownership of land by restricted entities.
- Mandatory investigations by the state Department of Agriculture into suspected violations, with referrals to the state attorney general or outside counsel if necessary.
- Authorization for courts to terminate leases violating the bill and for the state to sell real estate acquired under the bill’s divestment provisions.
The bill was passed unanimously with a 46-0 vote.
Impact on Farmland Values in Nebraska:
Market Stability:
By limiting ownership to entities not considered threats to national security, the measure may contribute to greater market stability and predictability, potentially protecting long-term land values.
Local Ownership Incentives:
Encouraging local or national ownership may foster more stable and invested stewardship of the land, potentially enhancing land value over time due to better land management practices.
Overall, the long-term impacts could include greater market stability and potentially enhanced land management practices, which could positively influence farmland values over time.
Recent Farmland Sales Data
Let’s dive into the latest sales data, including county location, land size by acre amount, soil productivity ratings, and sale prices per acre and total price in the table below. By analyzing this data, you can get a clearer picture of how your property may be valued in the current market.
Average Price of Farmland in Nebraska
• In the month of April, a total of 1,761.82 acres were sold in Nebraska from auction sales data.
• The current average per acre price for land in Nebraska according to these April sales is $6,471.97 dollars per acre which has decreased from last month’s $8,566 per acre.
• The highest-selling farm in Nebraska in the month of April 2024 sold on April 9th in Dakota County for $2,076,516 or $11,700 per acre for 177.48 acres, with an NCCPI of 68.1.
• The farm with the highest selling price per acre for this month sold on April 2nd in Wayne County for $12,300 per acre for 77.64 acres, equaling $954,972. This farm had an NCCPI score of 72.3.
Farmland Auction Results in Nebraska April 2024
| County | Total Acres | $/Acre | Soil Score | Total Price | Date Sold |
| Jefferson | 240.00 | $5500.00 | 59 NCCPI | $1320000.00 | 04/26/2024 |
| Gage | 88.90 | $5506.19 | 49.7 NCCPI | $489500.00 | 04/19/2024 |
| Lancaster | 88.86 | $8750.00 | 65.7 NCCPI | $777525.00 | 04/18/2024 |
| Jefferson | 190.00 | $3894.74 | 36.8 NCCPI | $740000.00 | 04/18/2024 |
| Nance | 69.94 | $3550.00 | 67.3 NCCPI | $248287.00 | 04/09/2024 |
| Nance | 201.00 | $4000.00 | 58.8 NCCPI | $804000.00 | 04/09/2024 |
| Nance | 119.00 | $3400.00 | 52.1 NCCPI | $404600.00 | 04/09/2024 |
| Nance | 157.00 | $7900.00 | 56.6 NCCPI | $1240300.00 | 04/09/2024 |
| Nance | 240.00 | $4600.00 | 49.8 NCCPI | $1104000.00 | 04/09/2024 |
| Dakota | 177.48 | $11700.00 | 68.1 NCCPI | $2076516.00 | 04/09/2024 |
| Wayne | 77.64 | $12300.00 | 72.3 NCCPI | $954972.00 | 04/02/2024 |
| Platte | 40.00 | $8000.00 | 72.1 NCCPI | $320000.00 | 04/02/2024 |
| Jefferson | 72.00 | $5034.72 | 68.3 NCCPI | $362500.00 | 04/01/2024 |
| 1761.82 | $6471.97 | $10842200.00 |
Call us about selling your Nebraska land at 402-739-8696 , we can help you safely transition your land ownership using a private sale, public auction or even a private land auction.
Market Trends and Future Projections:
Nebraska Land Market Trends
Creighton’s Report on the Rural Mainstreet Economy for April 2024:
- The Rural Mainstreet Index (RMI) has been below growth neutral for eight consecutive months.
- April’s RMI was 45.8, up from 38.0 in March, but still below the growth neutral mark of 50.0.
- Factors contributing to the decline include higher interest rates, weaker agricultural commodity prices, and increased grain storage costs.
Farm Loans:
- Farm loans have soared to record levels.
Farmland Prices:
- Farmland prices have been expanding for 53 consecutive months.
- The farmland price index in April was 56.5, a slight increase from 56.0 in March.
- Growth in farmland prices is solid but slowing.
Farm Equipment Sales:
- The farm equipment sales index fell below growth neutral for the 10th time in the past 11 months.
Ethanol Production:
- Approximately half of bank CEOs indicated ethanol production is very important to their local economy.
Agriculture Exports:
- Regional exports of agricultural goods and livestock for 2024 year-to-date are down 7.2% from the same period in 2023.
Why Now is a Good Time to Sell Farmland
- High Farmland Prices: Farmland prices have been expanding consistently for over four years. Although growth is slowing, prices remain strong, providing a favorable market for sellers.
- Record Farm Loans: With farm loans at record levels, there is strong demand for financing, indicating potential buyers are actively seeking to invest in farmland.
- Stagnant Economic Conditions: The Rural Mainstreet Index’s prolonged period below growth neutral suggests ongoing economic challenges in rural areas. Selling now could mitigate potential risks associated with prolonged economic stagnation.
- Decline in Farm Equipment Sales: The repeated slump in farm equipment sales may indicate broader economic struggles in the agricultural sector, potentially signaling future downturns that could affect land prices negatively.
- Decreasing Agricultural Exports: A significant drop in agricultural exports could pressure farm income and land values. Selling before these pressures intensify could be advantageous.
With the current high farmland prices and strong demand, in conjunction with economic challenges and uncertainties in the agricultural sector, make it an opportune time to consider selling farmland. If you’d like to go over what your options are for selling your farm click here for a free consultation.
Navigating the Selling Process:
Tips for Selling Your Farm in Nebraska
Explore a set of practical tips for successfully selling your farmland by downloading our free eBooks here. Schedule a nonobligatory consultation with us today and we will cover everything from when is the best time to sell, a customized marketing plan, sales methods, how we can help you find the right buyer, and answer your questions.
Farm Real Estate Experts in Nebraska
Meet our team of Nebraska farm real estate and auction experts who can provide you with valuable guidance and personalized assistance throughout the selling process. If you’re looking to uncover the true value of your Nebraska farm or are considering selling, don’t hesitate to reach out to our experienced team. We’re here to provide you with a customized plan to meet your goals. Contact us today to get started.
Assessing Your Farm’s Worth:
Nebraska Land Market Analysis Appraisal Technique
Curious what your farm could sell for? We prepare market analysis for each of our farmland sellers to help you discover and learn what your farm is worth from our market based research and expertise. Fill out our form here to request a market analysis of your Nebraska farmland or call us at 402-739-8696