By: Allan Vyhnalek, Extension Educator, University of Nebraska-Lincoln, Extension in Platte County
Each year the Ag Economics Department at UNL does a Land Value Survey in January and February. By the end of March, we receive the preliminary land value and cash rent values, which I reported at that time. We have received scores of requests at the office for that data, and we are glad to provide that information.
Some of the statistics mirrored information that we provided in previous years. The active farmer and rancher purchased 82 percent of the land sold on a state-wide basis. This is very similar to previous surveys. Estates are still the primary seller of farm land with 34% of the sales reported. Those numbers are very similar to last year.
One slight change from last year was the percentage of land that was sold on an outright cash purchase. In the last year’s data, the land sold was 51% by cash. This year, the land purchased with all cash was at 45%, which is in line with the last 5-7 years, but is high from an historical perspective.
Factors holding farmland prices back included: current crop prices, property tax levels and farm input costs. Factors that are supporting the current land values include: purchasing the land for farm expansion, 1031 tax exchanges, and the lack of land for sale.
The special features section for 2016 focuses on hunting rental arrangements for Nebraska including the type of wild game commonly hunted and the value associated with leasing of these rights. Land owners in Nebraska seeking to make additional income off of their property outside of the traditional agricultural use or lease arrangement (where the hunting rights have not been granted to the tenant) may choose to lease the right to exclusively hunt certain types of wild game to a third party.
Fifty-three percent of the rights leased were for Antelope or Deer. Twenty-two percent were for pheasants or quail with twenty-one percent for waterfowl. Sixty-five percent of the leases were less than $2,500 and for another thirty percent, the total payment made was between $2,500 and $4,999.
You can still request the summarized land value and cash rent data and we will mail to you. Or you can go to the entire report listing the historical data that I’ve referenced for this column by going to: http://agecon.unl.edu/realestate.html and selecting the link to the 2015-2016 Nebraska Farm Real Estate Market Development Highlight report.
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