The more difficult the economy, the more people search out safe investments. As they saying goes, buy land. It is a valuable commodity and they are not making any more of it.
Nebraska land has become one of those favored, safe investments. Recently the Nebraska Department of Revenue released its annual property valuations. Nebraska farm land has increased in value 11.9 percent in the past year.
Over the past year, valuation increases for Nebraska residential property were less than one percent and for commercial property slightly over 3.5 percent. Valuations are determined by property sales data. Specifically, valuations are set at approximately 77 percent of market value. As sales prices of land increase, the valuations also increase.
In some Nebraska counties, sales of true farm land are infrequent. For example, in Logan County when a piece of property does sell it is usually at a premium price. A great deal depends on how the land is designated.
The true value of the land depends of the type, which Natural Resource District it is in and the quality of the soil. Agricultural land can vary a from acre to acre. It could be ranch land, meadow, non-irrigated cropland or irrigated cropland. For instance, land can be in conservation area where irrigation is limited, thus limiting its use.
Over the last six years land values and sale prices in Nebraska have steadily increased. Some property that is cultivated for crops has sold in western parts of the state for as much as $4,500 per acre. Near O'Neill, grassland sold recently for $580 per acre, well above the average of $400 per acre.
A new marketing angle is accretion land (land that is often wooded and near water.) The soil tends to contain high amounts of gravel and is not suitable for farming, but can be used for hunting and recreational purposes. Fifteen years ago, this land was worth $50 per acre. Now buyers are willing to pay up to $1,500 per acre for this type of land.
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