A new report says the value of Nebraska's farmland soared 25 percent last year despite the drought, but according to the University of Nebraska-Lincoln Land Value and Rental Rate report those values may level off this year.
UNL professor Bruce Johnson estimates that the average value of land in the state grew to $3,040 between February, 2012 and this February. The areas seeing the largest increase in land values belonged to the southern part of the state.
Johnson says that while values in the northern parts of the state saw gains below 10 percent, the southern districts reported land values more than 30 percent higher.
The survey also looked at cash rents for farmland in 2013 and shows them higher than last year. The report shows rental rates for irrigated land are 13 to 15 percent higher. Dryland rental rates were up 8 percent in eastern Nebraska and about 5 percent in the rest of the state.
However, Johnson concluded the report saying the market for agricultural land will probably top out soon with market participants saying "enough" to higher land values.