Nebraska Agricultural Land Trends (2024 - 2025)

Nebraska Farm Real Estate Market Summary (2024–2025)

Source: University of Nebraska–Lincoln, Department of Agricultural Economics, Nebraska Farm Real Estate Market Highlights 2024–2025

Statewide Overview

The 47th annual Nebraska Farm Real Estate Market Report, published by the University of Nebraska–Lincoln, provides an in-depth analysis of agricultural land values, cash rental rates, and market trends across the state as of February 1, 2025. Based on surveys from 166 agricultural professionals—including appraisers, lenders, and farm managers—the report identifies modest market softening after several years of steady appreciation.

Land Values and Market Trends

For the first time in six years, Nebraska’s all-land average value declined, dropping approximately 2% to $3,935 per acre, down from $4,015 in 2024. This decrease equates to a statewide reduction of roughly $14.8 billion, bringing the total value of agricultural land and buildings to about $164.7 billion. The largest declines occurred in the Northeast and Southeast Districts (−3%), while modest increases of up to 1% were noted in portions of western Nebraska.

By land type, irrigated cropland values declined the most, with gravity-irrigated land averaging $7,745 per acre (−5%) and center pivot irrigated cropland at $8,730 per acre (−4%). Dryland cropland without irrigation potential decreased by 2% to $4,460 per acre, while grazing and hayland saw slight gains of 1–5%, supported by strong cattle prices and improved livestock profitability.

Net Returns and Capitalization Rates

The average net rate of return to agricultural land declined modestly in 2025, averaging 2.6% for dryland cropland, 2.9% for irrigated cropland, and 2.1% for grazing land. Higher operating and borrowing costs limited profitability for crop producers, while strong livestock markets slightly improved grazing returns. Overall capitalization rates across Nebraska ranged from 1.7% to 3.6%, with irrigated cropland representing the upper end of the range.

Cash Rental Rates

Cash rental rates for cropland trended lower statewide. Dryland cropland rents fell between 2% and 7%, averaging $35 to $250 per acre, depending on district and quality. Irrigated cropland rents declined between 2% and 6%, with center pivot averages around $175 to $365 per acre. Conversely, pasture rents increased slightly (1–5%), averaging $16 to $77 per acre, driven by robust cattle markets and continued demand for grazing capacity.

Market Activity and Transaction Trends

In 2024, panelists reported 667 agricultural real estate transactions across Nebraska. The average tract size was 224 acres, selling for an average of $1,116,739 per tract, or $4,995 per acre. The Northeast and East Districts reported the highest per-acre sale prices (over $9,000/acre), while the Northwest and North averaged near $1,100/acre.

Economic Forces

Survey participants identified lower crop prices, higher interest rates, and rising input costs as the most negative influences on land values in 2025. Conversely, strong livestock prices, farm expansion activity, and 1031 exchange demand provided modest support.

Summary

Nebraska’s 2025 agricultural land market reflects a mild correction after several years of appreciation, primarily influenced by lower commodity prices, elevated interest rates, and moderating farm income. While irrigated and dry cropland values softened slightly, pasture and hay land remain stable to stronger, buoyed by improved cattle markets. Overall market activity remains supported by local producers rather than outside investors, with most sales continuing to occur through estate or generational turnover.