Land Values and Rents Are Up - Again - Allan Vyhnalek Newscolumn for Week of March 24, 2008
As you know from comments I made from last week's column, it is no surprise that land rental rates and land values are significantly higher than a year ago. This is based on preliminary information from the UNL Ag Economics Department Annual Land Value Survey that was released last week. The survey represents the time from February 1, 2007 to February 1, 2008.
Land values continue to rise at a record pace. This year the state wide average increase in value was up 23.4%. That compares to a 14% increase reported in last year’s survey. Platte County is located in the East Crop Reporting District. The east district's increase for this year is 24.4% compared to an 11.5% reported last year.
Specific numbers for the east district tells more of the story. Dryland cropland (no irrigation potential) increased 22.8% from last year with average values from $2608 to $3203. Dryland cropland (irrigation potential) increased in value from $2900 to $3691, or 27.3%.
Gravity irrigated cropland (East District) increased 22.8% from $3323 to $4080 per acre. Center pivot irrigated cropland increased from $3646 to $4464, or 22.4%.
Cash rental rates increased at a slightly smaller rate than land prices. This is still the largest increase in the history for rents. Typically, rent values do not follow land values, but for the second year in a row, the percentage increase was similar and more than doubled the increase in cash rents from earlier years.
In the Eastern Crop Reporting District, dryland cropland rental rates changed from $113 to $135 per acre or a 19.5% increase. Gravity irrigated cropland rent increased 19.6% from $158 to $189 per acre. Center pivot cropland cash rent increased from $175 to $211 per acre, or a 20.6% increase.
Understand that all of the values printed in this column were preliminary survey results and are the reported "averages". There is a "range" of survey data for each category. That information will be released later in the summer. We have printed copies of the summary reports of both the land value and cash rent surveys. That summary includes all reporting districts and the pasture data. Stop in, e-mail or call your local Extension Office and they will be happy to provide that information to those that request it.
For more information or assistance, please contact Allan Vyhnalek, Extension Educator, University of Nebraska-Lincoln, Extension in Platte County. Phone: 402-563-4901 or e-mail AVYHNALEK2@unl.edu .
