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.

Today is a Great Time to Sell Farmland in Nebraska

For Nebraska farmland owners, today’s market conditions present a unique opportunity to sell at a favorable time. The economic indicators, as captured by the Rural Mainstreet Index (RMI) and other key metrics, reveal a complex but potentially advantageous landscape for those considering selling their land. Here’s why now might be the perfect time to take action.

1. Rural Mainstreet Index: A Declining Trend

The overall Rural Mainstreet Index (RMI) for Nebraska has been on a downward trajectory, sinking to 38.6 in July from 39.5 in June. This marks the 11th consecutive month that the index has remained below the growth-neutral threshold of 50.0, signaling ongoing economic challenges in rural areas dependent on agriculture and energy. The sustained decline is a clear indicator of economic uncertainty, making it a strategic time to sell before conditions potentially worsen.

2. Farmland Prices: A Window of Stability

While the overall economic outlook is challenging, farmland prices in Nebraska have shown some resilience. In July, the state’s farmland price index rose to 50.3 from 48.5 in June, edging just above the growth-neutral threshold. This uptick, though slight, provides a window of stability in an otherwise uncertain market. Selling your farmland now allows you to capitalize on this brief period of steadiness before any potential downturns, as bankers are predicting a 3.4% decline in farmland prices over the next 12 months.

3. Weak Agriculture Commodity Prices and Export Challenges

The agricultural sector in Nebraska is facing headwinds, with weak commodity prices and challenges in farm exports. While Nebraska’s exports of agricultural goods and livestock for 2024 year-to-date are up by $115.1 million, or 36.0%, compared to the same period in 2023, the broader regional trend is less optimistic. The region as a whole saw a $198 million decrease in agricultural exports. These mixed signals in the export market suggest that selling now, while prices and demand are relatively stable, could be a prudent decision.

4. Declining Farm Equipment Sales: A Sign of Trouble Ahead

One of the most concerning indicators is the steep decline in farm equipment sales, with the index plummeting to 19.0 in July, its lowest level in more than seven years. This decline, coupled with higher borrowing costs and tighter credit conditions, suggests that farmers are increasingly cautious about making significant investments. As equipment sales often correlate with farm expansion and productivity, this downturn could signal broader challenges ahead for the agricultural sector. Selling your land now can help you avoid potential value erosion as these issues unfold.

5. Economic Pessimism and Recession Fears

Rural bankers are expressing growing pessimism about the economic outlook, with the confidence index dropping to 28.3 in July, the lowest level in 2024. More than half of the surveyed bankers believe that a recession is the greatest risk for the region over the next 12 months. This lack of confidence reflects broader concerns about the rural economy’s ability to weather current challenges, making now an ideal time to sell before any further economic decline.

6. Interest Rate Uncertainty and Banking Conditions

Interest rates remain a critical factor in the agricultural economy. The July loan volume index, although still strong at 67.4, has decreased from June’s 79.2. With nearly half of the bankers advocating for interest rate cuts, there is significant uncertainty about future credit conditions. Selling your farmland now could help you avoid the impact of tightening credit and rising borrowing costs on land values.

Conclusion

Deciding to sell farmland is never an easy choice, but the current economic indicators suggest that today might be the right time to act. With farmland prices holding steady amid broader economic challenges, weak commodity prices, and declining farm equipment sales, the market presents a unique opportunity to secure a favorable price for your land. By selling now, you can protect your investment from potential future declines and capitalize on the current stability before any further economic downturns take hold.

If you’re considering selling, it’s essential to work with experienced real estate professionals who understand the agricultural market and can guide you through this complex decision. With the right strategy, you can make the most of today’s market conditions and ensure a successful sale of your Nebraska farmland.

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 July, a total of 790 acres were sold in Nebraska from auction and private sales data.

• The current average per acre price for land in Nebraska according to these July sales is $6,012 dollars per acre witha NCCPI score of 30.8.  The total sale for the farm was $4,750,000.

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:

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