Why Now Is Still a Good Time to Sell Farmland in Nebraska: Urgency Amid the Downturn in the Rural Mainstreet Index

As of August 2024, Nebraska’s Rural Mainstreet Index (RMI) hit a low of 36.5, well below the growth-neutral mark for the 12th consecutive month. With falling farmland prices, stagnant equipment sales, and rising farm loan delinquency rates, the agricultural sector is facing tough times. However, despite these challenges, now may still be the right time to sell your farmland in Nebraska—and the window to act could be closing fast.

Here’s why selling your farmland now might be your best move, even in the face of a downbeat economic outlook.

1. Farmland Prices Are Declining—Take Advantage of Current Values

Nebraska’s farmland price index has dropped significantly, from 50.3 in July to 43.6 in August, signaling that farmland values are on a downward trajectory. While this may seem like a reason to wait, it actually creates urgency. Selling now allows you to secure a price that may be significantly higher than what you could fetch in the coming months if the trend continues. Waiting too long could mean selling at a steeper discount later on.

The fact that farmland prices have only dipped three times in the past four months signals that buyers still have interest, but future declines could turn them cautious. By listing your land now, you can attract those buyers still looking to expand their operations or invest before prices fall further.

2. Buyers Are Still Out There—Demand for High-Quality Farmland Remains

Despite the dip in farmland prices, demand for well-positioned, high-quality farmland in Nebraska remains robust. Investors and large-scale farmers are looking for land to diversify their portfolios, and the limited supply of prime farmland keeps the market competitive.

Additionally, Nebraska’s agricultural exports for 2024 have surged by $136.8 million, a 39.3% increase from 2023. This upswing in export activity could spark renewed interest in farmland for its productive capacity, even as broader market conditions waver. Buyers are likely to see the current moment as a buying opportunity, further emphasizing the importance of acting now.

3. Liquidity and Cash Flow Needs in a High-Interest Environment

With rising farm loan delinquency rates across the region, holding onto land while hoping for a market rebound could put unnecessary strain on your finances. Delinquency rates have climbed by an average of 1.1% over the past six months, meaning more farmers are falling behind on loan payments.

Selling now offers an opportunity to gain liquidity when cash flow is crucial. Holding out for higher prices could leave you more exposed to rising interest rates and farm debt, especially if the economic downturn in Nebraska’s rural economy deepens.

4. Farmland as an Investment—Investors Are Looking to Diversify

While agricultural conditions have been challenging, farmland remains an attractive investment, particularly in uncertain times. Investors looking to hedge against inflation, stock market volatility, and global instability still view farmland as a stable, tangible asset. The drop in prices could be a signal to these investors that it’s time to buy, which means there’s an active pool of buyers ready to make offers.

Selling now, while investor interest remains, could allow you to close deals before prices soften further or demand wanes.

5. Short-Term Economic Conditions Make Timing Critical

The August RMI report paints a stark picture for Nebraska’s rural economy: farm equipment sales have slumped for the 13th straight month, and the hiring index has dropped to 43.1 from 47.8 in July. These numbers indicate an overall slowdown in the economic activity surrounding agriculture, which could lead to weaker demand for land as operations scale back.

While conditions remain challenging, the urgency comes from the potential for further deterioration. If you wait for a recovery, you could find yourself in a market where fewer buyers are interested and prices are significantly lower. The sooner you act, the better chance you have of securing a strong price before the market cools further.

6. Capitalize on Alternative Land Use Options

As interest in traditional agriculture ebbs, alternative uses for farmland are on the rise. From renewable energy projects like solar farms to conservation programs and even land leasing for non-agricultural purposes, farmland remains valuable for reasons beyond crop production. Nebraska is at the forefront of several environmental initiatives, and selling now could enable you to tap into these emerging markets.

Buyers looking for land suitable for renewable energy or conservation purposes may see the current price dip as a perfect entry point, making your farmland more attractive than ever.

Conclusion: Act Now to Maximize Your Return

While Nebraska’s Rural Mainstreet Index reflects a downturn in the state’s agricultural economy, the decline in farmland prices and broader economic challenges create urgency for those looking to sell. Waiting for a market rebound could mean missing out on today’s relatively strong values.

By selling now, you can take advantage of existing buyer demand, secure liquidity, and avoid the risks that come with holding onto land during a period of economic uncertainty. If you’re considering selling farmland in Nebraska, this may be your last chance to lock in a good deal before conditions worsen. Don’t wait—start the process today and position yourself to reap the rewards before the market shifts further.