By Scout Nelson
A recent University of Nebraska-Lincoln survey shows that agricultural land values in Nebraska declined by 2% over the past year. As of February 1, 2025, the average value of a Nebraska acre stands at $3,935, marking the first decline in six years in non-inflation-adjusted land values.
The report attributes this drop to falling crop prices, rising farm input costs, and high interest rates. These financial pressures have reduced net farm income, which declined by 17% in 2024. Experts suggest that these trends could continue, leading to further financial tightening for farm and ranch operations.
"Some of the underlying economic market forces are tending to be reflected in the farmland industry," said Jim Jansen, an agricultural economist leading the study. "We'll have to keep an avid eye on how some of the fundamental forces — that were reported as part of this survey — to better understand the future direction on where things could be headed."
While cropland values declined, grazing land and pasture values increased due to strong cattle and calf prices. Survey data showed the following land value changes:
- Gravity irrigated land dropped by 5%.
- Center pivot irrigated cropland declined by 4%.
- Dryland cropland with irrigation potential fell by 3%.
- Dryland cropland without irrigation potential dropped by 2%.
- Grazing land and hayland values increased between 1% and 5%.
Experts emphasize that understanding these market trends and making informed management choices will be crucial for agricultural operations in the coming year.
Photo Credits:gettyimages-orientaly
Categories: Nebraska, Crops