Nebraska Farmland Values Fall Again

LINCOLN, Neb. (DTN) -- For the second consecutive year, overall agriculture land values declined in Nebraska, according to a preliminary report from the University of Nebraska-Lincoln's Farm Real Estate Market Survey results released this week.

Those values fell by 1% compared to last year to an average of $3,905 per acre as of Feb. 1, 2026, according to the report. Nebraska farmland values have fallen from an average of $4,015 per acre in 2024.

The report paints a picture of crop producers caught in a cost-price squeeze as input costs and interest rates remain high while commodity revenues have fallen sharply. The survey shows conditions steadily eroded cropland values and rental rates for the second consecutive year.

Meanwhile, livestock producers -- particularly cattle operators -- are thriving, according to the report, showing up in grazing land values and hay land.

The report also recommends landowners and tenants consider flexible lease provisions to manage risk, and that early removal clauses be included in pasture leases to guard against potential drought.

"Land industry professionals responding to the annual survey attributed the decline in Nebraska agricultural real estate values to current crop prices, farm input costs and prevailing interest rates," the report said.

"Lower commodity prices across the state have tightened the financial position of many agricultural operations."

Cropland values in several specific areas have seen declines from 1% to 3% statewide.

The report said dryland cropland with no irrigation potential dropped by 1% statewide and in some districts fell by 3% to 5%. Land values for dryland cropland with irrigation potential fell by 2% statewide and from 3% to 6% in some districts, according to the report.

Center-pivot irrigated cropland values dropped 2% statewide, with some districts reporting losses of 4% to 8%.

At the same time, the survey found cash rental rates for cropland continued to fall as well.

"Dryland and irrigated cropland reported cash rental rates declined between 1% and 9% compared to the previous growing season," according to the survey.

Dryland cash rentals in southern Nebraska saw a 9% drop compared to last year.

"Survey participants reported that pressure on commodity prices contributed to cropland cash rental rates trending lower," the report said.

"Favorable 2025 U.S. rainfall in key grain regions has held prices low for the upcoming growing season. Input prices for seed, fertilizer and chemicals remain high relative to expectations for crop prices."

The financial backdrop is increasingly stressed for crop producers; however, livestock production has been picking up the slack in Nebraska, the survey found.

"Lower crop receipts in Nebraska led to a net decrease of approximately $576.65 million, or 16%, in crop receipts in 2025," the survey report said.

"The decline was also driven by declines in corn prices and lower production of soybeans and wheat. These losses were partially offset by a $3.22 billion increase in livestock receipts statewide. These financial conditions have led to a gradual deterioration in credit positions for certain operations. Heightened expenses follow strong farm loan demand and reduced liquidity positions."

While overall land values have fallen in the state, the report did find a few land categories that have seen significant increases in value in the past year.

Non-tillable grazing land values jumped by 7% to an average of $1,315 per acre, hayland grew by 5% to $2,525 per acre, while tillable grazing land jumped in value by 4% to $1,890 per acre.

The Nebraska Farm Real Estate Market report is the product of an annual survey of land professionals, including appraisers, farm and ranch managers and agricultural bankers.

Actual land values and rental rates may vary depending on the quality of the parcel and local market for an area. According to the report, preliminary land values and rental rates are subject to change as additional surveys are returned. The final version of the report is scheduled for release in July.

Todd Neeley can be reached at todd.neeley@dtn.com

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