By Scout Nelson
Nebraska agricultural producers are poised for a strong financial year in 2025. According to the Fall 2025 Farm Income Outlook by the University of Nebraska–Lincoln and the University of Missouri, the state’s net farm income is projected to climb 42% to $8.42 billion, compared to $5.94 billion in 2024.
This sharp increase is largely attributed to higher livestock receipts and continued government payments, which are expected to outweigh declines in crop receipts and increased production expenses. The report highlights that while the overall forecast is positive, not all sectors are benefiting equally.
“If you're a crop producer, you don't have cattle, that's certainly not exactly what you're experiencing,” said Jay Parsons, director of the University of Nebraska–Lincoln’s Center for Agricultural Profitability. “You're experiencing low prices and tight margins.”
Parsons noted that recent trade agreements have provided relief after previous market disruptions caused by tariffs and reduced exports. “Tariffs have affected some export activity,” he said. “Everybody’s heard about China not buying soybeans, but now they've agreed to buy some, so that's getting priced back into the marketplace.”
The report also mentions that pending disaster relief payments, delayed due to the government shutdown, are expected to contribute to total income once distributed. However, analysts predict a modest dip in 2026 as government payments decline, an element that is often uncertain and dependent on external conditions.
Production expenses and crop insurance costs are likely to rise, slightly lowering net income to $8.37 billion in 2026, though both crop and livestock receipts are projected to improve.
Overall, Nebraska’s agricultural outlook for 2025 reflects resilience and optimism amid fluctuating markets, with diversified operations continuing to drive statewide growth.
Photo Credit:gettyimages-d-keine
Categories: Nebraska, Business, Crops, Soybeans, Government & Policy, Livestock, Beef Cattle, Dairy Cattle