Nebraska Income Growth Faces Costs

By Scout Nelson

A new outlook report from the University of Nebraska Lincoln and the University of Missouri shows that Nebraska farm income is projected to reach a record $9.96 billion in 2026. This marks a 12 percent increase from 2025 levels. The report highlights strong growth in livestock markets, higher government payments, and a recovery in crop income as key drivers.

Government payments are expected to rise significantly, increasing by $1.24 billion, or 71 percent, to $2.97 billion. This increase is linked to higher commodity program payments and additional support programs. These payments play a major role in boosting overall farm income in the state.

Livestock production continues to perform strongly. Total livestock receipts are projected to grow by $708 million, reaching $23.55 billion. Cattle production makes up the largest share, with receipts expected to increase by $1.09 billion. High cattle prices and stable supply conditions are supporting this growth.

Crop income is also improving after several years of decline. Total crop receipts are projected to increase by $517 million to $12.01 billion. Corn and soybean sales are expected to rise due to better prices and strong production from the previous year.

“Strong cattle prices and higher government payments are helping push Nebraska’s projected farm income to a record level in 2026,” said Brad Lubben. “At the same time, production expenses are also projected to reach a record high. That means many producers may still be working with tight margins, even in a year when the aggregate income number looks very strong.”

Production costs are expected to increase to a record $30.37 billion. Higher expenses for fuel, fertilizer, and livestock purchases are key factors.

Looking ahead, income may decline in 2027 due to reduced government support. A webinar covering the report and current U.S. and Nebraska net farm income projections will take place at noon Central Time on May 7. The complete report and registration details can be found on the Center for Agricultural Profitability website.

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