A
snapshot of the northwest Nebraska agricultural landscape reveals a shift in land values and rental rates. According to preliminary findings from the 2025 Farm Real Estate Market Survey, the average value of agricultural land in Nebraska dipped by 2% year-over-year to $3,935 per acre. This decline marks the first time since 2024's record non-inflation-adjusted statewide land value that market values have decreased.

    Industry professionals attribute this downturn to a trifecta of factors: lower crop prices, rising interest rates, and elevated farm input costs. Tightened financial positions among operations, increased borrowing costs for leasing or purchases, and heightened pressure on investment decisions are all contributing to the decline in agricultural real estate values.

    In contrast, the Northwest region experienced a 1% increase in average farmland value to $965 per acre, with hayland and grazing land showing notable gains. However, dryland cropland rental rates trended lower across Nebraska, influenced by declining crop prices and favorable production conditions in major grain-producing regions of the US.

    Rental rates for pasture and cow-calf pairs rose, driven by increased cattle prices and shifts in national livestock inventories. Cash rental negotiations should consider early removal provisions to address drought concerns. The level of service provided by landlords or tenants affects rental rates for cow-calf pairs, with considerations including fence maintenance, noxious weed control, and utility bills.

    Land values and rental rates presented here are averages based on survey participants' responses by district. Actual values may vary depending on parcel quality and local market conditions. Preliminary results are subject to change as additional surveys are returned. The final report will be published in June 2025.

    To explore the complete report, visit https://cap.unl.edu/realestate or contact Jessica Groskopf at 308-632-1247 or jgroskopf2@unl.edu.