G03-1486 Agricultural Land Ownership and Tenure Patterns in Nebraska

Agricultural land in Nebraska is a significant asset of wealth and a key economic input into the state\u27s economy. It is no mere coincidence that Nebraska consistently ranks fourth among the 50 states in total cash receipts from farm marketings while also ranking fourth in land acreage in farms and third in terms of irrigation acreage. This NebGuide provides an overview and an interpretation of land ownership and tenure patterns in Nebraska

2008 Nebraska Farm Income Prospects

There’s a quiet late-summer hush over Nebraska’s cropland these days. Except for swaths of earlier hail and extended flooding, crops are looking good just about everywhere. And if good weather holds through harvest and prices remain strong, a banner year for Nebraska’s crop producers could be in the making. While it is still too early to call it official, the income potential associated with our major crops may be nothing short of “bin-busting.” Even so, the situation is almost bitter-sweet in this diverse state where livestock and crop production go hand-in-hand. Record-level prices for corn and soybeans convert to escalating feed costs for livestock producers, who for the most part, have not yet seen their revenues catch up with their rising production costs. For many, profit margins in recent months have been slim to non-existent. In fact, unless the livestock producers were feeding their own produced feed grains, per-head profit losses in recent months have been more the rule than the exception

Some Musings on Taxation

I may be wrong, but it seems to me we are witnessing a profound shift in American politics and that only seems to be accelerating these days. The shift is in regard to government fiscal policy - particularly the revenue/taxation side. From the federal level down through the state levels to local levels, we see a “fiscal crisis” of varying degrees of severity. There is a lot of political rhetoric. Yet neither political party seems to be engaging in any serious debate (probably because they are too busy finger-pointing and passing the buck). The leaning down of government and “cutting out the fat” has been the focus for so long that little is left to cut without cutting into the basic quality and quantity of governmental services delivered. As a result, we are experiencing deterioration of public services at every level of government - all under the political guise of “fiscal responsibility”

The Occupation of Farming

Farming is one of the world’s oldest occupations. It has been hailed as one of the most noble of occupations by Thomas Jefferson and countless others throughout recorded history. Tilling the soil and husbanding the livestock as a resource steward in the seemingly-endless cycle of seasons, this remains in the minds of many as the basic stereotype of a farmer

Nebraska Farm Real Estate Market Developments 1995-96

Nebraska\u27s agricultural land values generally moved upward during the year ending February 1, 1996; although variation was rather pronounced. For the state as a whole, the increase averaged 4.5 percent and represented the ninth straight year of value increases. Cropland values were higher throughout the state as crop commodity prices pushed to 20-year highs by the end of 1995. Dryland cropland values generally rose 5 to 6 percent, with gains of 9 percent recorded in the East District of the state. Gravity irrigated land rose an average of 5 percent while center pivot irrigated land values rose over 7 percent during the year ending February 1, 1996, a clear reflection of rising cash grain prices. While cropland values were rising, the grazing land and hayland classes were struggling to maintain previous year\u27s value levels. Overall, nontillable grazing land values dropped nearly 2 percent while tillable grazing land and hayland values were basically static with less than a 1 percent increase. In some districts declines as high as 4 to 5 percent were reported, reflecting a depressed cattle economy. Characteristics of the 1995 market transactions were similar to patterns of recent years. Three out of every four transactions were purchased by active farmers, in most instances for acreage expansion. The agricultural land market is generally one of parcels rather than whole-farm units. As a result, three-fourths of the 1995 transactions were unimproved tracts without any building improvements. Even though the dollar outlay per transaction exceeded $185,000 in 1995, 40 percent were cash purchases in which no debt was incurred. Just over half of the transactions were mortgage financed. Cash rental rates in 1996 for cropland were at or slightly above year-earlier levels in most areas of Nebraska. Pasture rental rates on an AUM basis were down somewhat in 1996 in several areas of the state. Current annual net returns to irrigated cropland were estimated by reporters to average 6.1 percent, ranging from 5.2 to 6.9 percent across the substate areas. For dryland cropland, the estimated annual rates average 5.3 percent. Net returns to grazing land are somewhat lower, averaging just over 4 percent. Two-thirds of the UNL survey reporters in early 1996 expected market activity for the year to be similar to year-earlier levels; while most of the others were expecting some increase in sales volume. The majority of the reporters (61 percent) were expecting land values to continue upward during the remainder of 1996, with the expected rate of change averaging 5.4 percent. Only a small percentage of reporters (2 percent) expected agricultural land values to decline during 1996

State’s Net Farm Income Levels Tell Quite A Story

Nebraska’s 1999 net farm income levels document what people in the industry already knew – 1999 was not a good year for the agricultural economy. According to the recently released 1999 USDA net farm income statistics, Nebraska’s 1999 aggregate net farm income was estimated at $1.66 billion. This total falls 10 percent below the 1998 figure and nearly 18 percent below the annual average of the 1990’s (Table 1)

ECONOMIC EVALUATION OF CROPSHARE AND CASH LEASE CONTRACTS IN SOUTH DAKOTA AND NEBRASKA

Factors influencing choice of share or cash rental leases for cropland are examined using a 1996 dataset containing 1071 lease contracts in Nebraska and in South Dakota. Logistic regression results indicate tenant's age, capital position, and relationship with landlord were more important than leased land use or crop management variables.Farm Management,

Nebraska Farm Real Estate Market Developments in 1977-78

Farm real estate represents about three-fourths of the total value of farm production assets in Nebraska. Consequently, changes in value, ownership patterns, and other characteristics of the farm real estate market exert significant impact on the economic and social well-being of agricultural producers, rural communities, and the State as a whole. The dynamics of the farm real estate market, particularly in recent years, suggests that accurate and complete information concerning this market is of great importance. From the standpoint of the public interest as well as that of individual participants, all land market decisions should be based upon a sound understanding of the current market situation. The purpose of this report is to provide information about the current farm real estate market and recent developments in Nebraska. A historical perspective of Nebraska farmland values is first presented. Findings from the 1978 Nebraska Farm Real Estate Market Survey conducted by the Department of Agricultural Economics are then analyzed. Specific characteristics of actual sales occurring during 1977 also provide insight into the farm real estate market

Retail Patterns Across Nebraska, a 10-Year Perspective

Retail activity is very dynamic and highly variable, across both time and space. We have been following total retail activity, using taxable retail sales from the Nebraska Department of Revenue as a proxy for many years. Over time, we have witnessed the continuing trend towards increasing concentration of retail activity in the larger trade centers and urban communities, and away from rural and small trade centers. While state sales tax data provides some clear perspectives on overall changes and trends, even down to town and county levels, details as to the specific type of retail activity is precluded

Was Old Jules Right?: Soil Stewardship on Leased Land

In a country where more than 40% of the agricultural land is farmed by tenant operators, the question of how that land base is farmed becomes paramount In this study we examined soil erosion levels in relation to land tenure and surveyed tenant farmer practices and attitudes in Nebraska and South Dakota, We found leased land was farmed and maintained by tenants in an environmentally sustainable manner, Furthermore, we found no evidence to suggest variation from this norm due to type of lease, size of farm, type of farm organization, or landowner classification, While educational level and years of experience (age) contributed to soil stewardship practices, to a great extent tenant farmers in these Great Plains states farmed leased land in a conscientious manner to maintain their integrity and reputation in the community as being a good farmer, Landowners, as well as society at large, benefit from this perspective