By Scout Nelson
According to early results from the 2025 Nebraska Farm Real Estate Market Survey, the average value of agricultural land across Nebraska has decreased by 2% from the previous year, settling at $3,935 per acre. This marks the first drop in land values since the survey began 46 years ago and follows a record-high value recorded in 2024.
The survey, conducted annually by the University of Nebraska-Lincoln’s Department of Agricultural Economics, gathers insights from land professionals, such as appraisers, farm managers, and agricultural lenders. The data is categorized by land types and reported across Nebraska’s eight Agricultural Statistic Districts.
Respondents pointed to several factors behind the decline. These include lower crop prices, higher interest rates, and persistent input costs for seeds, fertilizers, and chemicals. Declining commodity prices have weakened the financial position of many farming operations, while rising borrowing costs have made land investments more expensive.
In contrast, land values in Nebraska’s Northwest region showed a 1% increase, averaging $965 per acre. This region includes counties such as Scotts Bluff, Kimball, and Dawes. Land types such as non-tillable grazing land and hayland saw modest increases, while irrigated cropland values fell slightly.
Cash rental rates also experienced shifts. Rental rates for dryland and irrigated cropland declined due to lower crop prices and stabilized but still high input costs. Flexible lease agreements are encouraged to help manage financial uncertainty in such cases.
Meanwhile, pasture and cow-calf pair rental rates rose. This rise is largely linked to higher cattle prices and changes in livestock inventory across the country. Lease agreements for grazing land now often include early removal clauses to prepare for potential drought conditions. The responsibilities for maintaining fences, managing weeds, and supplying water also influence the final rental rates.
These results are based on preliminary data and may change with further survey responses. Final survey findings will be published in June 2025.
Photo Credit: istock-alenamozhjer
Categories: Nebraska, Crops, Corn, Wheat