Nebraska Ag Land Faces Market Challenges

By Scout Nelson

Nebraska’s average agricultural land value has dropped for the first time in six years. According to the 2024-25 Nebraska Farm Real Estate Market Survey, the average land value fell 2% to $3,935 per acre.

The decline comes as crop producers face growing financial pressure. After several years of strong farm income, lower crop revenues, rising production costs, and higher interest rates have started to impact the land market.

“Crop producers are dealing with pressure on their margins,” said Jim Jansen, an agricultural economist with Nebraska Extension. “The combined effect of softer commodity markets and higher costs is being reflected in what people are willing to pay for different types of croplands.”

The report highlights land value changes across Nebraska. Grazing land gained modest value, supported by strong cattle prices, while irrigated and dryland cropland values fell in many regions. Jansen explained that differences in profitability between crops and livestock continue to influence land values.

“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.”

Cash rental rates for cropland dropped between 1% and 7% depending on the region. Pasture rental rates decreased slightly in some areas but increased up to 5% elsewhere, driven by strong cattle demand.

Jansen stressed the importance of communication between landowners and tenants, especially when including drought provisions in grazing leases for disaster assistance eligibility.

The survey also explored hunting leases as a growing source of income. Nearly half of Nebraska’s hunting leases were for antelope or deer, with most leases generating under $5,000 annually.

“Recreational leases continue to add value for many landowners, especially in areas with good wildlife habitat,” Jansen said. “These leases can help diversify income and offset some of the expenses associated with land ownership.”

The full report is available from the Center for Agricultural Profitability at https://cap.unl.edu/realestate.

Photo Credit:istock-alenamozhjer