Farm Real Estate Value Hits Record High

Like hits by Kansas City Royals superstar shortstop Bobby Witt, Jr., increases in Nebraska agricultural land values just keep coming. According to the USDA National Agricultural Statistics Service, Nebraska's average farm real estate value rose 7% over the past year, reaching a record high of $4,080 per acre (including the value of buildings). This year's increase marks the fourth consecutive year of increases. In fact, this year's average value is 53% more than the 2020 value (Figure 1). Increases occurred for all land categories. The average cropland value, $6,540 per acre, was up 6% from 2023. Dryland crop ground increased 7% to $5,350 per acre. Irrigated land rose 7% to $8,550 per acre. And pastureland posted an increase of 8%, averaging $1,400 per acre.

FIGURE 1. NEBRASKA AVERAGE FARM REAL ESTATE VALUE ($/ACRE)

Source: USDA National Agricultural Statistics Service

The U.S. average farm real estate value also hit a record high of $4,170 per acre, up 5% over last year. Florida saw the largest percentage increase (13%), followed by Tennessee (11%) and Virginia (10%). Among Plains states, Oklahoma saw the largest increase at nearly 9% and Kansas had an 8% increase (Figure 2). The highest average value per acre is found in Rhode Island at $22,000. The lowest is in New Mexico at $700 per acre.

FIGURE 2. 2024 FARM REAL ESTATE VALUE & PERCENT CHANGE VS. 2023

Source: USDA National Agricultural Statistics Service

This year's increase is no fluke. Figure 3 shows the percentage changes in Nebraska real estate values between 1971-2024. Two things stand out. First, real estate values increase more often than they decrease. In 38 of 54 years, 70% of the time, land values rose. Second, increases are likely to be greater than 10%. Value growth of at least 10% occurred in 21 years, 39% of the time, and surged by more than 20% in 7 years. Years with downturns occur, but rarely are they large. In only 2 years did values decrease by more than 10%.

FIGURE 3. ANNUAL PERCENTAGE CHANGE IN NEBRASKA REAL ESTATE VALUE

Source: USDA National Agricultural Statistics Service

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