Real estate prices have skyrocketed in recent years, and farmland is no exception.
The University of Nebraska-Lincoln’s 2022 Farm Real Estate Survey found prices jumped an average of 16% in the state from a year earlier to $3,360 per acre.
This is the largest year-over-year increase since 2014 and the highest inflation-adjusted land value ever statewide in survey history.
Low interest rates were a major driver of these increases, as they were for house prices and the prices of other types of real estate. But farmland values have also been boosted by rising commodity prices.
“Many farms have improved their financial situation over the past year, despite rising machinery costs and input expenses,” said Jim Jansen, agricultural economist at Nebraska Extension, co-author of the survey and of the relationship with Jeffrey Stokes, professor in the Department of Agriculture. Economy.
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The Eastern Region, which includes Lancaster County, had the most expensive farmland, with an overall average of $8,110 per acre and a high of $10,920 for center-pivot irrigated cropland.
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You can see the full survey at https://cap.unl.edu/realestate.
Economic pain for the state’s animal industry
Agriculture is doing well now, but just a few years ago things looked pretty uncertain.
When COVID-19 first hit in early 2020, it threw a wrench in the cattle side.
Many meat and poultry processing plants had to close partially or completely due to epidemics, which hampered the entire supply chain.
Nebraska has not been spared economic pain, and a recent study by the University of Nebraska-Lincoln shows just how much damage has been done.
According to the study, authored by professors Elliott Dennis and Brad Lubben, cash receipts for animals and animal products in Nebraska fell nearly 15% in 2020 from their 2010-2019 average.
All major meat and animal categories recorded declines, with meat animal receipts falling by 15% and poultry and egg receipts by more than 22%.
However, a few categories have seen tremendous growth. One was free-range chicken, which saw its revenue nearly triple. This could be linked to the backyard chicken craze that increased in the early months of the pandemic.
The other category that has seen strong growth is aquaculture which, according to the study, consists entirely of farmed trout in Nebraska. It has grown by more than 120%.
You can see the full study, which was published last month, at: https://cap.unl.edu/livestock/impact-covid-19-cash-receipts-nebraska-livestock-and-poultry-producers.
Among the best of the worst on gas prices
Gasoline prices have been in the news lately, especially with the national average hitting record highs earlier this month.
Prices certainly haven’t been cheap in Nebraska, but the increases here haven’t been as bad as in many other states.
On Thursday, the average price for regular unleaded in the state was $3.87 per gallon. That was lower than all but four states, according to AAA.
Nebraska generally ranks somewhere in the middle of the pack for pricing. It is generally lower than most western states and those in the Rust Belt and Northeast, but higher than most Sunbelt states and some bordering states, including Iowa and North Dakota. South.
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This, however, has not been the case in recent weeks. Nebraska has always had lower prices than those states. In fact, the only states that have had lower prices lately are Kansas, Missouri, Oklahoma, and Arkansas.
I asked Patrick DeHaan, senior oil analyst at GasBuddy, a few weeks ago if he had an explanation for why Nebraska was suddenly one of the cheapest states to buy gas from. Here is what he said in an email:
“There have been a lot of changes in the normal rankings for low prices as some states are seeing prices go up faster than others. I expect we will be back to more normal things once things get better. will begin to subside. Rising gas prices are like running a race. Some places will go up faster and finish sooner while others will go slower and take longer. But we are all headed for the same place. “
I guess “the same place” he was referring to was record prices. Fortunately for Nebraskans, prices have yet to reach the records set in July 2008.
So, I guess, enjoy it while it lasts – if you can find pleasure in paying close to $4 a gallon.
Regular readers of this column will know that I like to end it with an overview of Lincoln and/or Nebraska’s recent rankings in national reports. The last:
* Tied for seventh in home sales among mid-size cities (Porch)
* State with the highest property taxes (WalletHub)
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