Unlocking the Value of Nebraska Farmland: A Comprehensive Guide to Current Land Prices and Expert Insights - June 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.

Cover image for farmland value report in Nebraska
Jason J Smith, Auctioneer

Jason J Smith, Auctioneer

515-537-6633

Jason is an experienced farmland broker and auctioneer with extensive experience in farmland sales across this Midwest.  Jason has worked with hundreds of clients to create advantageous outcomes.  If you are selling land schedule a consultation with Jason by calling or using the calendar.

The Impact of Flooding in Nebraska

As Nebraska farmers begin the challenging task of post-flood cleanup, the agricultural landscape is facing a unique set of circumstances that make now an opportune time to consider selling farmland. The recent flooding of the Missouri River has left significant damage, creating both immediate challenges and potential opportunities for farmland owners.

The flooding has had a profound impact on Nebraska’s farmland:

  • Severe Damage:  The damage includes debris and sand deposits brought by the river, complicating the cleanup efforts.
  • Missed Planting Windows: The flooding has caused farmers to miss critical replanting windows, diminishing this year’s agricultural prospects. Crop insurance payouts are expected to be insufficient to cover all losses, adding financial strain.
  • Soil Restoration: Farmers are turning to cover crops to help restore and protect the soil. While these crops are less lucrative, they are essential for retaining soil structure and replenishing vital nutrients lost during the flood.

Why Sell Now?

Despite the challenges, there are several compelling reasons why now is a great time to sell farmland in Nebraska:

  1. Potential for Higher Land Prices: When crop yields are low due to natural disasters like flooding, commodity prices often increase. This rise in prices can drive up the value of farmland, making it a strategic time to sell and capitalize on higher land prices.
  2. Immediate Financial Relief: Selling farmland now can provide immediate financial relief and the ability to invest in other opportunities.
  3. Market Demand: The resilience and preparedness of Nebraska’s farming community ensure that there will always be interest in productive farmland. Buyers looking to expand their operations or invest in agriculture may see this as an opportune moment to acquire valuable land.

The Resilience of the Farming Community

Nebraska’s farming community is known for its resilience and determination in the face of adversity. Despite the severe damage and financial losses, farmers are committed to recovering and continuing their essential agricultural duties. The focus on recovery, pest control, and weed management underscores the community’s preparedness and adaptability.

Conclusion

In the aftermath of the Missouri River flooding, Nebraska’s farmland owners face a pivotal moment. While the immediate challenges are daunting, the potential for higher land prices and the opportunity for financial relief make now a strategic time to sell farmland. By capitalizing on the current market conditions, farmland owners can secure their financial future, mitigate ongoing risks, and contribute to the long-term recovery and resilience of the agricultural sector in Nebraska.

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 June, a total of 399.17 acres were sold in Nebraska from auction and private sales data.

• The current average per acre price for land in Nebraska according to these June sales is $4860.90 dollars per acre which has decreased from last month’s $5419.74 per acre.

• The highest-selling farm in Nebraska in the month of June 2024 sold on June 14th in Harlan County for $1,506,600 or $6,200 per acre for 243 acres, with an NCCPI of 68.7.

• The farm with the highest selling price per acre for this month was the same farm sold on June 14th in Harlan County for $6,200 per acre for 243 acres, equaling $1,506,600. This farm had an NCCPI score of 68.7.

Farmland Auction Results in Nebraska June 2024

County Total Acres $/Acre Soil Score Total Price Date Sold
Harlan 243.00 $6200.00 68.7 NCCPI $1506600.00 06/14/2024
Buffalo 156.17 $3521.80 63.4 NCCPI $550000.00 06/04/2024
Average Dollar Per Acre 399.17 $4860.90 $2056600.00

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:

Creighton University Rural Mainstreet Index (RMI) June 20, 2024

June 2024 Survey Results at a Glance:

• For a 10th straight month, the overall Rural Mainstreet Index sank below growth neutral according to bank CEOs in the region.
• After 53 straight months of above growth neutral for farmland prices, prices declined for a second straight month.
• Farm equipment sales sank below growth neutral for the 12th time in the past 13 months.
• Delinquency rates for farm and business loans on Rural Mainstreet have remained virtually unchanged over the past six months according to bank CEOs.
• Only 8.7% of bankers have increased their farm loan rejection rates, while approximately 13.0% and 4.3% reported restructuring or reducing the loan-to-value ratios, respectively.
• According to trade data from the International Trade Association, regional exports of agriculture goods and livestock for 2024 year-to-date were down 4.1% from the same period in 2023.

Nebraska

The Nebraska RMI for June sank to 39.5 from 41.8 in May. The state’s farmland price index for June increased to 48.5 from 46.7 in May. Nebraska’s June new-hiring index sank to 46.0 from 48.2 in May. According to trade data from the International Trade Association, exports of agriculture goods and livestock for 2024 year-to-date were up 33.8% from the same period in 2023.

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