UNL Report: Nebraska Ag Land Values Decline

Justin Korver harvests corn in southeast Lancaster County in November 2023.

Lincoln, Nebraska, March 13, 2025 — Nebraska’s agricultural land values decreased by 2% in the past year, with an average value of $3,935 per acre as of Feb. 1, according to preliminary findings of the University of Nebraska–Lincoln’s 2024-25 Farm Real Estate Market Survey.

This is the first decline in the non-inflation-adjusted market value of Nebraska agricultural land in six years and follows a record high of $4,015 per acre in 2024.

The survey’s preliminary report was published March 12 by the university’s Center for Agricultural Profitability, based in the Department of Agricultural Economics. It provides current estimates of agricultural land values and cash rental rates, broken down regionally across a variety of land types and classes.

Industry professionals who responded to this year’s survey attributed the decline in land values to current crop prices, interest rate levels and farm input costs, said Jim Jansen, an Extension agricultural economist who leads the survey and report.

“High interest rates and lower crop prices have tightened farm finances, leading to cautious land and equipment investments,” Jansen said. “With borrowing costs at multi-decade highs, land markets have slowed as producers navigate these financial pressures.”

Net farm income in Nebraska decreased by about 17% in 2024, to $7.69 billion. Lower corn and soybean prices reduced crop receipts in the state by about $1.59 billion but were partially offset by higher cattle and calf prices. Jansen said those differences between crop and livestock profitability were reflected in the market value of the land classes that serve each industry.

The report found that the market value of center pivot irrigated cropland averaged 4% lower across the state in the past year, while gravity irrigated land was down 5%. Dryland cropland with no irrigation potential decreased by 2% and dryland cropland with irrigation potential dropped 3%. Average grazing land and hayland values increased by between 1% and 5% across Nebraska.

Average cash rental rates in Nebraska for the upcoming growing season have followed a similar trend, with dryland and irrigated cropland down between 1% and 7%. However, rental rates for pasture and cow-calf pairs increased by about 3% to 4% compared to the previous grazing season. 

“Rental rates for cropland generally trended lower in the survey responses, as crop prices declined and input costs remained relatively high, pressuring margins,” Jansen said. “In contrast, grazing land and pasture rental rates saw increases, reflecting the strength in the cattle market and adjustments in national livestock inventories.”

According to the report, net farm income in Nebraska is forecast to decline again in 2025 due to ongoing crop prices and input expenses. Lenders have also noted that the tightening of financials for many farm and ranch operations in the region means lower income and liquidity positions for those businesses. Despite those pressures, Jansen said Nebraska’s agricultural real estate remains a key asset for producers and understanding market trends and management choices will be critical.

“In volatile markets, staying informed about land and commodity trends is essential in making informed decisions,” he said. “Lease adjustments for crop price fluctuations, production costs and water availability can help ensure fair agreements for both landlords and tenants navigating uncertainty.”

The Nebraska Farm Real Estate Report is available on the Center for Agricultural Profitability’s website, https://cap.unl.edu/realestate. Two webinars covering new land values and cash rental rates, along with other topics relevant to agricultural landowners and tenants, will be March 25 and 27. Registration is free on the webpage above.

The report is the product of an annual survey of land professionals, including appraisers, farm and ranch managers, and agricultural bankers. Results from the survey are divided by land class and agricultural statistic district. Land values and rental rates presented in the report are averages of survey participants’ responses by district. Actual land values and rental rates may vary depending on the quality of the parcel and local market for an area. Preliminary land values and rental rates are subject to change as additional surveys are returned. The final version of the report will be published in July.