Irrigation big for NE land prices
If new data for land values and rents in Nebraska is any indication, potential means everything.
Dryland ground with "potential for irrigation development" saw the highest gains over the last 5 years, according to a report released this week by University of Nebraska (UNL) Extension specialists. That land saw a 105% increase in price between 2006 and 2011. Land already developed with a center pivot irrigation system had the second-highest gain at 102%.
For that same period, UNL Extension's Tom Dorn says dryland ground with "no irrigation potential" still saw big gains; that category increased in price by 70% in those same 5 years.
"Cropland values have appreciated considerably in the last several years reflecting higher commodity prices. With only a few exceptions cash rental rates have climbed and followed gains in land values quite closely," Dorn says. "Cash rents increased from 46% to 91% during that same period."