Resilience of Nebraska Land Markets Amidst Lower Commodity Prices

Despite a decline in commodity prices, land prices in Nebraska have remained surprisingly stable, with demand outpacing supply. According to Ron Stock, co-founder of BigIron Realty, the average time to market a farm currently ranges from 60 to 90 days. This trend is evident in recent online auctions across various counties in Nebraska, where several significant sales have taken place.

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In Central Greeley County, a 162.28-acre pasture sold for $3,600 per acre, totaling $584,208. The property features natural amenities such as trees for shade and a small water dam, making it attractive for wildlife and hunting.

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In East Platte County, a highly productive 234.55-acre center-pivot-irrigated farm fetched $14,650 per acre, amounting to $3,436,157.50. This farm is characterized by flat to gently rolling terrain and includes essential irrigation infrastructure, such as a 10-tower pivot and an eight-tower pivot, along with a 100-hp electric motor and pump system.

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Merrick County also saw significant transactions, with a 196.95-acre pivot-irrigated farm selling for $7,700 per acre, totaling $1,516,515. This tract is conveniently located near local markets, including an ethanol plant, and had previously yielded over 80 bushels of soybeans per acre. Additionally, a second tract of 148.66 acres from the same seller sold for $8,300 per acre, or $1,233,878, featuring similar irrigation capabilities.

Farm Progress

The resilience of land prices in Nebraska suggests a robust agricultural sector that continues to attract buyers despite fluctuating commodity prices. This stability may indicate confidence in the long-term viability of farming in the region, as buyers are willing to invest in productive land with established irrigation systems and access to local markets.

Farm Progress

While the current market conditions appear favorable for sellers, some critics argue that the high land prices may create barriers for new farmers entering the market. The increasing costs associated with purchasing land could limit opportunities for young or beginning farmers, potentially impacting the future of agriculture in Nebraska.

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Ron Stock noted that the ongoing demand for land, even amidst lower commodity prices, reflects a strong interest in agricultural investments. He emphasized that the market dynamics are influenced by various factors, including the quality of land and its accessibility to resources.

Farm Progress

There are no significant discrepancies reported regarding the sales data; however, the broader implications of these land prices on new entrants to the farming sector remain a topic of discussion among agricultural economists and stakeholders.

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“by Ron Stock Land prices are still holding firm, and with lower commodity prices, that is a surprise.” — Ron Stock, Co-founder of BigIron Realty

Farm Progress