LINCOLN – Agricultural land values in Nebraska increased about 4.4 percent in the last year, with rises in cropland values offsetting declines in rangeland, according to preliminary findings from the 2010 Nebraska Farm Real Estate Survey.

Overall, agricultural land values statewide increased from $1,431 per acre to $1,494 in the year ending Feb. 1, said Bruce Johnson, the University of Nebraska-Lincoln agricultural economist who conducts the annual survey.

The increase follows on the heels of a year of little to no value change across most of the state.

Dryland cropland with no irrigation potential increased an average of 6.4 percent, while statewide averages for gravity-irrigated cropland and center-pivot irrigated cropland climbed 5.2 and 6.1 percent, respectively.

Meantime, dryland cropland with potential to be developed for irrigation increased about 7.3 percent in value, though values varied considerably across the state depending on development restrictions and opportunities.

While average cropland values saw increases, the value of nontillable grazing land fell 5.6 percent statewide, with even larger declines recorded in major range areas of the state. For example, the North region, which comprises much of the Sandhills, saw a 10.1 percent decline.

“Survey reporters remarked frequently of the relatively strong income years as of late for the crop sector, while the livestock economy has struggled over the last few years to break even,” Johnson said. “These economic conditions get factored into virtually every local agricultural real estate market.

“It was also noted that the number of cropland offerings on the market have tended to be very limited relative to demand thus creating some upward bidding pressure on cropland tracts that do come up for sale,” Johnson added.

Overall, the average all-land value changes ranged from a 3.3 percent decrease in the North, which is heavily weighted toward grazing land acreage, to a 10.1 percent increase in the East.

Similar patterns are reflected in preliminary cash rental rates for 2010 compiled for the survey. Cropland rental rates tend to be up across the state, while pasture rates are holding steady or dropping slightly below 2009 levels, a reflection of the cattle economy.

Average dryland cropland rental rates are up 3 percent to 7 percent, while regional increases in the irrigated cropland classes are largely in the 4-to-8-percent range. The state’s highest cash rents are occurring in the Northeast and East, where high-quality center-pivot land is renting at about $280 per acre.

“Overall, the market for agricultural land across the state has remained relatively strong over the course of the national and global economic recession,” Johnson said. “While economic impacts have been felt in the farm economy, agricultural real estate assets have basically held both value and earnings potential to this point in time.

“Unlike residential and commercial real estate markets in numerous parts of the nation, agricultural land here in the U.S. heartland remains a relatively solid investment for its owners.”

Reports from a panel of agricultural land experts were compiled for this survey, which is conducted in cooperation with the Institute of Agriculture and Natural Resources’ Agricultural Research Division. Final estimates will be available in a report this summer.

The report is available in the Department of Agricultural Economics’ publication Cornhusker Economics

NOAA’s State of the Climate report for the winter season (December through February) and the month of February, state that temperatures were below normal for the contiguous United States. The winter season was wetter than normal; however precipitation in February alone was slightly below average.

Based on data going back to 1895, the monthly analyses, prepared by scientists at NOAA’s National Climatic Data Center in Asheville, N.C., are part of the climate services that NOAA provides to businesses, communities and governments so they may make informed decisions to safeguard their social and economic well-being.

In Grand Island, temperatures for December-February averaged 4.7 degrees below normal, while precipitation averaged 0.37 of an inch above normal for the three month period. Nearly 40 inches of snow fall was recorded during the three month period in Grand Island.

Temperature and precipitation highlights:

• For the winter season, 63 percent of the country experienced below normal temperatures.
• In contrast to this national trend, Maine experienced the third warmest winter.
• February’s average temperature was 32.4 degrees F, which is 2.2 degrees below the long-term average.
• Cold air in the wake of several reinforcing Arctic air masses dominated much of the United States during February, creating temperatures that were much-below average in the Deep South and below average in the Plains and mid-Atlantic states. Both the South and Southeast climate regions experienced their seventh coldest February on record. Meanwhile, warmer-than-average temperatures dominated the Northwest and Northeast climate regions.
• Florida had its fourth coldest February, Louisiana its fifth coldest, and Alabama, Georgia and Texas each had their sixth coldest. It was the seventh coldest February in Arkansas, while both Mississippi and South Carolina experienced their eighth coldest.
• Precipitation for the winter season was above average while it averaged slightly below the long term mean for the month of February.
• The season-long wet spell was notable for the Southeast, as Alabama, Florida, Georgia, and North Carolina each had their eighth wettest winter. Precipitation was also much above normal for South Dakota, Virginia, New Jersey and Maryland. Wyoming and Idaho experienced their eighth and ninth driest winters, respectively.
• Regionally, the active weather pattern in the South, Southwest, and Northeast created above normal precipitation for the month. The Northwest, West North Central, East North Central, and Central climate regions each had below-normal February precipitation. On the state level, New Mexico experienced its seventh wettest February on record. Conversely, Idaho had its seventh driest, and Wyoming its eighth driest

The livestock sector can lead the agricultural economy to higher net farm income, assuming the farm economy benefits from a recovering general U.S. economy.

That analysis tops a 2010 baseline report prepared by the University of Missouri Food and Agricultural Policy Research Institute (FAPRI). The 66-page report will be delivered to the U.S. Congress on Tuesday, March 9. The 10-year baseline shows economic possibilities for livestock, crops and biofuels under certain assumptions.

“If jobs—and consumers—return, the agricultural sector will benefit,” said Pat Westhoff, co-director of MU FAPRI. “Higher incomes increase the demand for food, feed, fiber and fuel, supporting farm commodity prices.”

Projected net farm income increases the next two years largely because of stronger livestock prices. “The recovery would mark a major change in direction for the farm economy after a dismal 2009, but 2010 farm income recovers only a third of the ground lost in 2009,” Westhoff said. Net farm income fell by more than $30 billion in 2009, as sharp declines in cash receipts were not offset by modest drops in production costs.

“The outlook depends on more than uncertainty of the current demand picture,” said Scott Brown, FAPRI livestock economist. Many unknowns, especially energy, affect costs for grain and livestock producers.

 Gov. Dave  Heineman signed LB 667 Wednesday, which clarifies fence law, according to the Nebraska Cattlemen.

According to Nebraska Cattlemen, the bill performs four functions.

First, it establishes clear legislative intent changes in resolving fencing disputes at any level. Second, it states that adjoining landowner’s responsibilities are to be borne in just proportion when constructing and maintaining a fence line. Third, it highlights the legal standard of a fence line. Fourth, it removes the statutory demand of zoning from current law.

According to Nebraska Cattlemen, the legislation should “relieve an undue burden on livestock producers when it comes to division fences.

“Nebraska law requires livestock producers to confine their livestock.  Historically, neighbors have maintained division fences regardless if each are confining livestock.  Challenges have arisen when one property owner does not have livestock and has felt they were not required to contribute to the maintenance of a division fence.  This legislation clarifies that the responsibility will be borne in “just proportion” to the benefit received by the fence. For example, a division fence between a cattle grazing property and a cornfield is the responsibility of the livestock owner since he is required by law to confine his livestock. However, there is some benefit to the cornfield property owner helping the maintain the fence that protects his crop.  In a dispute, the new legislation would allow the mediator to apply a just proportion to the maintenance of the division fence rather than it simply being construed that the livestock owner bears the entire burden,” according to the Nebraska Cattlemen.