By Scout Nelson
Nebraska farm and ranch production expenses reached $32.4 billion in 2025, according to data from the USDA National Agricultural Statistics Service (NASS). The total represents a 6% increase from 2024, reflecting continued cost pressures across the state's agricultural sector.
Livestock-related expenses were the largest production cost category, totaling $11.6 billion, up 33% from the previous year. The increase highlights the significant role livestock operations play in Nebraska agriculture and the rising costs associated with managing those enterprises.
Feed remained the second-largest expense category at $3.4 billion, although expenditures declined 10% from 2024 levels. Land rent ranked third at $2.8 billion, increasing 1% from the previous year and remaining a major operating expense for producers.
Livestock expenses accounted for 36% of Nebraska's total production expenditures, while feed represented 11% and rent accounted for 9%. Farm services made up another 7%, reflecting the diverse range of costs involved in agricultural production.
On a per-operation basis, Nebraska farms and ranches spent an average of $734,127 in 2025, an increase of 7% from the previous year. Livestock expenses averaged $263,039 per operation, significantly exceeding the national average and underscoring the state's strong livestock industry.
Average feed expenditures reached $77,098 per operation, while rent costs averaged $63,946. Farm services expenditures averaged $52,834, highlighting the substantial financial commitments required to operate farms and ranches in Nebraska.
The findings are based on data collected from Nebraska producers who participated in USDA's Agricultural Resource Management Survey (ARMS) between December 2025 and May 2026. The survey provides a detailed snapshot of production expenses and spending trends across the state's agricultural industry.
Photo Credit: gettyimages-pamwalker
Categories: Nebraska, Government & Policy, Livestock