By Scout Nelson
Nebraska’s farm economy is set for a strong rebound in 2025, with net farm income projected to rise 42% to $8.42 billion, according to the Fall 2025 Nebraska Farm Income Outlook. The report, produced by the University of Nebraska–Lincoln and the University of Missouri, mirrors a national forecast showing a similar 41% increase in U.S. farm income.
The report attributes Nebraska’s growth largely to rising livestock receipts and federal payments, which will offset lower crop revenues. Total farm receipts are expected to increase by $1.85 billion (5%), with livestock receipts climbing $3.22 billion (16%), while crop receipts are projected to decline $576 million (5%).
Nebraska producers are expected to receive more than $2 billion in government payments in 2025, primarily from the American Relief Act, passed in late 2024. Some payments are likely to extend into 2026 due to federal delays.
“The aggregate outlook for increased farm income in 2025 really hides a divide between ag sectors,” said Brad Lubben, agricultural policy specialist in Nebraska. “Beyond higher government payments, livestock receipts are climbing on stronger cattle prices while crop receipts continue to decline with lower corn and soybean prices. The result is a farm economy that looks stronger on paper than many producers may feel in their day-to-day operations.”
The report forecasts cattle receipts to rise 17% to $20.85 billion, while hog, poultry, and egg receipts also increase. However, crop receipts are expected to fall 5% to $11.4 billion, driven by lower corn and soybean prices and reduced wheat production.
Production costs are projected to increase 6% to a record $30.39 billion, mainly from higher livestock expenses and feeder cattle prices. Fuel and oil costs are expected to decline by 5%, while rent and interest expenses slightly decrease.
Alejandro Plastina, director of the Rural and Farm Finance Policy Analysis Center, said the data helps guide decision-makers. “When planning for 2026, it is important for farmers and ranchers to take action to secure sufficient liquidity to operate under sustained tight margins, barring unanticipated new government payments or pent-up demand for agricultural commodities.”
The Center for Agricultural Profitability will host a webinar on November 6 to discuss the findings in greater detail.
Photo Credit:gettyimages-artqu
Categories: Nebraska, Government & Policy, Livestock, Beef Cattle, Dairy Cattle