Agriculture land values in Nebraska have held strong the past six months, despite the uncertainty surrounding the nation's economy, according to Omaha-based Farmers National Co.

During that time, owner/operators around the country took advantage of the decline in investor attention and purchased available land to expand their operations. It was that activity that kept land values steady despite the turbulent economy.

Now, the industry's steady performance has caught the eye of investors, who are returning to the land market as a safe place for their dollars, says Lee Vermeer, vice president of real estate at Farmers National. Investors have long played a role in the land-buying market, but toward the end of 2008 those once active investors retreated, he says.

The land market did slow somewhat last fall and there were some weak spots around the country the first part of 2009. Vermeer attributes the slowdown to the drop in commodity prices. In the past 30-45 days, however, the market is gaining ground. Some land sales have been at the same price levels recorded in the middle of 2008, he explains.

Monty Meusch, the company's area sales manager in eastern Nebraska, Kansas, and western Iowa, says the land market is strong in most areas and demand for the good farms is as strong as last summer when there was $6 per bushel corn and $12 per bushel beans.

In recent weeks, Meusch adds, the better farms in eastern Nebraska and western Iowa are selling in the range of $4,500 to $6,000 an acre.

The demand for pasture remains strong, but a dip in grassland sales is likely the result of a tough cattle market and lower herd counts in general.

"For the most part, the market is still being fueled by active farmers and ranchers seeking to add land to their operations," Meusch says. "However, with most other investment options being on the downside, we are seeing renewed interest from investors who believe that farm land may be their best investment for the long term."

J.D. Maxson, area sales manager in western Nebraska and South Dakota, auction activity in recent months has resulted in strong sales for local owner operators. Recent auctions in western Nebraska have seen sales range from $385 per acre for ranchland to as high as $925 per acre for dryland crop ground and pasture.

For more information on land listings in your region, visit the Farmers National Company website at www.farmers-national.com.

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