A
snapshot of the Nebraska agricultural landscape reveals a subtle shift in the market value of farmland. According to the preliminary results of the 2025 Farm Real Estate Market Survey, the average price per acre has dipped by 2% statewide, marking the first decline since reaching an all-time high in 2024.

    The survey, conducted annually by the University of Nebraska-Lincoln's Department of Agricultural Economics, polled industry professionals across the state. Their collective insight points to a trifecta of factors contributing to this downturn: lower crop prices, higher interest rates, and increased farm input costs.

    In northwest Nebraska, where the average farmland value rose 1% in 2024, land values have taken a slight hit. The region's agricultural industry is feeling the pinch of reduced crop prices, which has tightened financial positions for many operations. Interest rates have also raised borrowing costs, making it more challenging to lease or purchase land.

    A closer look at the data reveals some interesting trends. Dryland and irrigated cropland rental rates have trended lower across Nebraska in 2025, with survey participants attributing this decline to lower crop prices. However, pasture and cow-calf pair rental rates have seen a significant increase, linked to rising cattle prices and shifts in national livestock inventories.

    When negotiating cash lease agreements, it's essential to consider flexible lease provisions that can help mitigate price uncertainty and production risks. For grazing land, early removal provisions can be crucial in addressing drought considerations for the growing season.

    The data presented here are averages of survey participants' responses by district, with actual land values and rental rates varying depending on parcel quality and local market conditions. The final results from the survey will be published in June 2025.