By Scout Nelson
Nebraska's agricultural land values saw a 2% decline in the past year, with an average value of $3,935 per acre as of February 1, 2024, according to the University of Nebraska–Lincoln's 2024-25 Farm Real Estate Market Survey. This marks the first drop in non-inflation-adjusted land values in six years, following a record high of $4,015 per acre in 2024.
The decrease in land values is attributed to several factors, including crop prices, interest rates, and farm input costs, as stated by Jim Jansen, an Extension agricultural economist. “High interest rates and lower crop prices have tightened farm finances, leading to cautious land and equipment investments,” said Jansen. “With borrowing costs at multi-decade highs, land markets have slowed as producers navigate these financial pressures.”
Nebraska's net farm income fell by approximately 17% in 2024, down to $7.69 billion, due to reduced crop receipts from lower corn and soybean prices, though higher cattle and calf prices provided some offset. These market conditions have influenced the value of land classes tied to different industries. Irrigated cropland values dropped by 4%, while gravity irrigated land decreased by 5%. Dryland cropland values also fell by 2-3%, while grazing land and hayland values saw increases of 1-5%.
Cash rental rates for the upcoming growing season followed a similar pattern, with cropland rents down between 1% and 7%. However, pasture and cow-calf pair rental rates increased by 3-4%, reflecting the strength in the cattle market.
Looking ahead, Nebraska's net farm income is expected to decline again in 2025 due to persistent crop price and input cost challenges. “In volatile markets, staying informed about land and commodity trends is essential in making informed decisions,” said Jansen. “Lease adjustments for crop price fluctuations, production costs and water availability can help ensure fair agreements for both landlords and tenants navigating uncertainty.”
The full Nebraska Farm Real Estate Report is available online, with webinars scheduled for March 25 and 27 to discuss new land values and trends.
Photo Credit: gettyimages-simplycreativephotography
Categories: Nebraska, Business, Crops, Corn