Cash rates continue to climb in Nebraska, hit all-time high
Farmers and ranchers in Nebraska are paying the highest cash rental rates on record an economist says that won’t change soon.
Jim Jansen with the University of Nebraska-Lincoln says rates jumped anywhere from 10 to 15 percent, matching a 10-year trend. “Some of the major driving forces were the changes in commodity prices in terms of expectations on what the commodities were worth,” he says. “Input expenses followed that so it was a balancing act to figure out where cash rents should be given the cost and income associated with it.”
The 2022 Nebraska Farm Real Estate Market Survey of landowners and producers showed the highest value was $400 per acer in Northeast Nebraska for irrigated crop land. The lowest was $27 per acre in the northwest area for low-quality, dryland.
He tells Brownfield rates in Eastern Nebraska are higher than other areas because of different growing conditions. “There’s different levels of risk associated with raising of crops compared with the western part of the state. With that being said, some of the changes we’re seeing is being reflected in the risk, yield expectation especially in the dryland and also differences in rainfall that we expect across Nebraska.”
Grazing rates also trended higher, but not nearly as much as crop land because of increase in feed costs.
UNL Ag Economist Jim Jansen: