Although land prices continue to decline in Nebraska, we may see more land coming to market as the growing season comes to a close this fall. Ron Stock, co-owner and CEO at Stock Realty & Auction Co., reports recent sales indicate tracts of land are consistently selling for 10% less than they were a year ago.

SELLERS SHOWING INTEREST: Despite lower land prices, broker Ron Stock notes more landowners are starting to pay attention to the market, and there will likely be more interested sellers coming to market as the growing season comes to a close this fall.

"People are really starting to pay attention to the market. This dip down in prices has got landowners' attentions, and there are a lot of people calling and not necessarily saying they're going to sell but interested in what their farm would sell for," Stock says. "They usually ask, 'I understand corn and cattle prices are way down to 1990 prices, have you seen land prices go down?' and 'How much do you think my land would sell for?'"

Despite lower land prices, Stock says there will likely be more interested sellers coming to market. "There is land that's going to come to the market, and there is going to be an educated seller. He's going to know his land is worth a little less than last year, but he's going into it knowing that. And he's not going to blame the real estate agent. He's going to blame the farm economy," Stock says. "There's about to be more land coming to the market, and people are going to be buying land they didn't buy 20 years ago."

One reason more land is coming to market is a small percentage of lenders are suggesting producers sell a piece of land to get refinanced for next year. "And there are producers selling that land," Stock says. "The banker tells the farmers 'We're going to refinance you. Get through this year, and next year at this time you're going to have to sell an 80 or a quarter to generate some cash.'"

Stock notes dryland prices aren't declining any more in proportion to irrigated land. Surprisingly, they're declining at the same rate. That could be attributable to modern hybrids, but it could also be due to timely rains that have fallen on many parts of eastern Nebraska this year.

The good news is, with these timely rains, the 2016 cropping season is set for a record harvest. Growers in Nebraska are raising one of the best crops they've ever raised, although prices are at record lows. "Growers who are used to raising 180- to 190-bushel corn will be raising 230-bushel corn," Stock says. "Take that extra 40 bushels, at $3 corn, that's $120. That helps a little bit, but growers are still looking at a very marginal profit, and a lot of times a loss this year."

Ron Stock contributed to this report. He is a licensed real estate broker and has been in business with his brother, Mark, since 1984. He is licensed in Nebraska, Kansas, Oklahoma, Colorado, South Dakota, Iowa, Minnesota and Missouri.