By Ryan Evans
Nebraska’s average agricultural land value declined in 2025 for the first time in six years, falling 2% to $3,935 an acre, according to the final report from the University of Nebraska–Lincoln’s 2024-25 Farm Real Estate Market Survey.
The decline comes as Nebraska crop producers face growing financial pressures. Following years of rising farm income, the land market is beginning to reflect recent realities like lower crop revenues, elevated production costs and higher interest rates, according to Jim Jansen, an agricultural economist with Nebraska Extension who coordinates the annual report.
“Crop producers are dealing with pressure on their margins,” Jansen said. “The combined effect of softer commodity markets and higher costs is being reflected in what people are willing to pay for different types of cropland.”
The report details how land values vary by region of the state and land type. Grazing land showed modest gains, reflecting ongoing demand driven by higher livestock prices, while irrigated and dryland cropland experienced declines in many parts of the state. Jansen said that the differences in crop and livestock profitability may continue to be reflected in the market value of each industry’s land classes.
“Higher cattle prices have helped support the value of grazing land, while lower crop prices and tighter margins are putting pressure on cropland values,” Jansen said. “We expect these market dynamics to continue influencing land values across different regions and land classes in Nebraska.”
Cropland vs. pasture rental rates
Cash rental rates for cropland trended lower across the state, down between 1% and 7% compared to last year. The productivity of rented cropland including the type of soil, expected rainfall and local market contributed to regional cash rental rates, according to survey panel members.
Pasture rental rates declined 1% in the central region but saw modest gains across the rest of the state, increasing between 1% and 5% over the prior year. These rates were driven by stronger cattle markets and demand for grazing land. Cow-calf and stocker monthly rental rates also trended steady to higher across the state in 2025.
Source : unl.edu