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Nebraska Farm Real Estate Market Developments In 1981-82, Bruce B. Johnson, Ronald J. Hanson

Nebraska Farm Real Estate Reports

Nebraska farm real estate values declined nearly 4 percent during the past year. The reasons are quite obvious -- low farm income, changing inflation expectations, and continued high interest rates. The combination of these fac­ tors has drastically altered what was a "bullish" land market up until 1980.

During the 1970's, farmland values were appreciating rapidly. The average increase was approximately twice the rate of inflation. The real value (purchasing power)of farmland doubled during this decade. Financial leveraging was extremely profitable for farmland investors and land prices were quickly bid up.

The past year represents quite a contrast. Adding an …

Nebraska Farm Real Estate Market Developments In 1980-81, Bruce B. Johnson, Ronald J. Hanson

Nebraska Farm Real Estate Reports

Farmland values have steadily appreciated over the past four decades, but the largest advances have occurred since 1971. During the last ten years, Nebraska farmland values have increased nearly twice as fast as inflation.

However, the past year ending February 1, 1981, was an exception. Farm­land in Nebraska appreciated about 10 percent, which was comparable to the overall rise in the General Price Level. So, in real terms (purchasing power), farmland values were essentially stable across the State during the last year.

Considerable variation in value trends across Nebraska was evident in the findings of the Department of Ag Economics …

Nebraska Farm Real Estate Market Developments In 1979-80, Bruce B. Johnson, Ronald J. Hanson

Nebraska Farm Real Estate Reports

The Department of Agricultural Economics conducted its third annual farm real estate market survey for 1979-80. Questionnaires were mailed in January, 1980 to nearly 500 survey reporters across Nebraska which included rural ap­praisers, real estate brokers, professional farm managers, and farm mortgage lenders.

These reporters estimated the average per acre value of farmland in their respective or surrounding counties as of February 1st for both 1979 and 1980 by the major land uses for that area. With exception of center pivot irrigated land in the Northwest Crop Reporting District, land values generally demonstrated strong gains during 1979 with the largest …