Farm Land Prices Fall in Nebraska

By Scout Nelson

The University of Nebraska–Lincoln reports that agricultural land values in Nebraska are declining for the second consecutive year. The average value has dropped by 1% to $3,905 per acre as of early 2026, reflecting changes in the farm economy.

The report, prepared by the Center for Agricultural Profitability, shows that lower crop prices, rising input costs, and higher interest rates are putting pressure on land markets. These factors are reducing farm income and causing both producers and lenders to act more carefully.

“Many operations are facing tighter liquidity as crop revenues decline while input costs remain elevated,” said Jim Jansen. “Those conditions are leading producers and lenders to take a more cautious approach when navigating these financial pressures.”

Crop income in Nebraska has declined significantly, with a drop of about $576.6 million in 2025. This decrease is mainly due to lower corn prices and reduced soybean and wheat production. However, livestock income has increased strongly, helping balance some of the losses in crop production.

This difference between crop and livestock performance is reflected in land value trends. Cropland values have declined across most regions. Irrigated cropland and dryland areas have seen decreases between 1% and 3%. In contrast, grazing land and hayland values have increased by 4% to 7% due to strong demand driven by high cattle prices.

Rental rates follow a similar pattern. Rates for cropland have dropped between 1% and 9%, while pasture rental rates have increased by about 4% to 5%. These changes show how market conditions are shifting across different types of agricultural land.

“Flexible lease provisions can help landowners and tenants manage production and price risk when margins are tight,” Jansen said. “Factors such as crop prices, input costs and drought conditions all play a role in how lease agreements are structured.”

The Nebraska Farm Real Estate Report is available on the Center for Agricultural Profitability website. Two free virtual workshops will be held on March 24 and 26, focusing on 2026 land values, cash rental rates, and leasing strategies. Participants can register online through the same webpage. 

Overall, the decline in land values reflects ongoing economic challenges in agriculture, while strong livestock markets continue to support certain segments of the land market.

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