EDITORIAL: Farming success leads to higher land values in state

It was bound to happen. The surge in corn, soybean and wheat prices has led to record high farmland values in Nebraska. Cropland values have soared to 20 percent higher than last year's value, while pasture lands have increased 23 percent in value.

The U.S. Department of Agriculture announced the land values Tuesday. This is creating a good news/bad news scenario for land owners. While they are seeing their property increase in value, which is certainly a good thing, it will mean higher property taxes eventually when the county assessor reevaluates those properties for tax purposes.

It seems that  everything grown in Nebraska is in increased demand across the globe. With 23 ethanol plants in Nebraska gobbling up every bushel of corn available, the price of corn at one time was over $7 per bushel. That has cooled off to about $5 per bushel, but that is still $1 better than last year's price.

Soybeans likewise have seen prices increase from last year's $10 per bushel price to just under $12 per bushel now. At one time this year, that price was hovering in the $15 range.

It will be a banner year for Nebraska farmers this year, but they are quick to point out the mind-boggling increases in their per acre input costs. While their crops have never seen such high returns, fuel and fertilizer prices have set records as well.

Such is the life of the grain producer. They have no control over their products growing conditions, severe weather impact, or input costs. They likewise have no control over the price they receive for their labors, except for the timing of selling their crops. Every year is a gamble with huge risks. The good years have to balance out the bad years. The bankers have to be paid regardless of the crop outcomes.

All in all, it is still a good time to be farming in Nebraska.