How Much Does an Acre of Land Cost in Nebraska?

Understanding the cost of land in Nebraska involves navigating a dynamic market influenced by various factors. This article aims to provide insights into how land costs are established across the state and where to find the most current and specific data.

Understanding Nebraska Land Values

Nebraska’s agricultural land values recently averaged $3,935 per acre as of February 1, 2025, reflecting a 2% decline from the prior year’s record high of $4,015 per acre in 2024. This represents the first decrease in non-inflation-adjusted land values in six years, following a period of consistent increases. The overall farm real estate value, which includes land and buildings, averaged $4,080 per acre in 2024, an increase of 7% from the previous year.

The type of land plays a significant role in its valuation, with distinct characteristics leading to varied price ranges. Irrigated cropland, for instance, commanded an average of $8,550 per acre in 2024, while non-irrigated cropland, also known as dryland, averaged $5,350 per acre. Pastureland values were considerably lower, averaging $1,400 per acre in 2024. Recent trends in 2025 show irrigated cropland values generally declining by 4% to 5%, and dryland cropland values decreasing by 2% to 3%. Conversely, grazing land and hayland values saw increases ranging from 1% to 5%.

Productivity and quality are fundamental drivers of land value, especially for agricultural parcels. Factors such as soil quality, drainage capabilities, topography, and historical crop yields directly influence the productive capacity of the land. Assessors in Nebraska often utilize a “Classified Use” method, which considers both land use and underlying soil type to determine market value. This approach categorizes soil types into Land Capability Groups (LCGs) based on their suitability for field crops, assigning a per-acre value to each LCG.

Location and access also contribute significantly to a property’s value. Proximity to major transportation routes, agricultural markets, and essential infrastructure can enhance the utility and desirability of farmland. For non-agricultural land, its closeness to urban centers, amenities, or recreational areas can boost its market price. Land values are assessed as of January 1 each year, with agricultural land typically valued at 75% of its actual market value for property tax purposes.

Water availability and associated water rights are particularly important for irrigated land. The reliability of water access and the specific legal rights to use water sources can substantially impact the value of such properties. This is a critical consideration in regions where irrigation is essential for crop production. The presence of existing improvements, such as barns, fencing, residential structures, or other infrastructure, also adds to the overall value of a land parcel. These improvements are part of the total farm real estate value.

Broader market conditions, including economic factors, commodity prices, and the dynamics of supply and demand, exert considerable influence on land values. For instance, lower crop prices and elevated input costs have recently contributed to a softening in cropland values. Conversely, strong cattle prices have supported and even increased the value of grazing land. Interest rates also play a role, as higher borrowing costs can reduce the financial capacity for land purchases.

Other market-driven factors include the demand for farm expansion, non-farmer investor interest, and the use of strategies like 1031 tax-deferred exchanges. These elements collectively shape the competitive landscape for land, affecting what buyers are willing to pay. The interaction of these diverse factors creates a wide spectrum of land values across the state, making average figures merely a starting point for analysis.

Geographic Price Differences in Nebraska

Land values in Nebraska exhibit considerable variation across different geographic regions, reflecting distinct agricultural practices, soil characteristics, and economic conditions. The state is broadly divided into several agricultural statistics districts, each with its own unique market dynamics. This regional diversity means that land prices can differ significantly from one part of Nebraska to another.

The eastern and northeastern parts of Nebraska generally feature the highest land values, primarily due to their fertile soils, consistent rainfall, and proximity to major markets. In 2023, average sale prices in the northeast and eastern regions reached between $9,341 and $9,723 per acre. These areas are characterized by intensive crop production, with a high concentration of irrigated and non-irrigated cropland. Recent data indicates that these regions have experienced some of the most pronounced declines in land value, with drops of up to 3% in 2025, largely influenced by lower crop prices.

The Central and Southern regions of Nebraska also support significant agricultural activity, including both crop and livestock operations. Land values in these areas are often influenced by the balance of irrigated cropland, dryland, and pasture. While not as high as the eastern districts, these regions maintain strong values, with grazing land showing modest gains of 2% to 9% in the East and Central areas in 2025. The consistent profitability of the cattle industry has helped to stabilize or increase pastureland values in these areas.

Moving westward, the Sandhills region is predominantly characterized by extensive pastureland used for cattle ranching. The sheer scale of operations and the nature of the terrain mean that per-acre values for pastureland are considerably lower than for cropland. However, the value of this grazing land has seen increases, driven by strong cattle prices and demand for ranching operations. The unique ecosystem of the Sandhills supports a different type of agricultural economy, where land is valued for its grazing capacity and water resources.

The western and northwestern parts of Nebraska typically have the lowest average land values in the state. For instance, in 2024, the average farmland value in the Northwest region was estimated at $960 to $965 per acre. These regions are often drier, with less tillable cropland and more reliance on grazing land and dryland farming. Despite the overall statewide decline, the Northwest region saw a slight increase of 1% in overall land values in 2025. This modest gain suggests a different market response compared to the crop-intensive eastern areas, possibly due to the resilience of livestock markets.

These regional discrepancies are directly tied to the specific attributes of the land and local economic drivers. Areas with higher rainfall and more productive soils naturally command higher prices for cropland. Conversely, regions dominated by ranching, where larger acreages are needed to support livestock, will have lower per-acre values but often higher total parcel prices. Understanding these geographic differences is crucial for anyone evaluating land in Nebraska, as statewide averages can mask significant local variations.

Sources for Current Land Price Data

Accessing current and specific land price information is a crucial step for anyone interested in Nebraska’s land market. Several reputable sources provide data that can help in understanding valuation trends and making informed decisions. It is beneficial to consult multiple sources to gain a comprehensive perspective.

Official and academic institutions are primary providers of reliable land value data. The USDA National Agricultural Statistics Service (NASS) conducts annual land value surveys, providing statewide and regional averages for farm real estate, cropland, and pastureland. These reports offer a broad statistical overview, often released in early August for the current year. Their data includes detailed breakdowns by land use, providing valuable context for market analysis.

University Extension Services, particularly the University of Nebraska-Lincoln (UNL) Extension, are another robust source. UNL’s annual Farm Real Estate Market Survey is widely recognized for its detailed insights into Nebraska land values and cash rental rates. This survey, typically released in preliminary form in March and a final report in June, provides current point-in-time estimates broken down by land class and agricultural statistics district. These reports are based on surveys of land professionals, including appraisers, farm managers, and agricultural bankers.

In addition to academic and government sources, the private sector offers valuable, often real-time, market insights. Specialized land brokers and real estate agencies operating in Nebraska possess deep local knowledge and access to specific property listings. Firms like Nebraska Land Brokers, Lashley Land & Recreational Brokers, and National Land Realty specialize in farm, ranch, and recreational real estate. These professionals can provide granular data on recent sales, current listings, and expert valuation services tailored to specific parcels and regions.

Online real estate platforms can also be a starting point for exploring available properties and general price ranges. Websites such as Zillow, LandWatch.com, and Land.com list rural properties across Nebraska. While useful for broad searches, it is important to note that specialized agricultural land sites or direct engagement with land brokers often provide more accurate and detailed information for agricultural or large rural parcels. These general platforms may not capture the nuances of farm and ranch land valuation.

Local county assessor’s offices are another resource for property valuation data, primarily for taxation purposes. Each county assessor is responsible for valuing all real property within their county annually. While their assessed values are used for property tax calculations and may not always align perfectly with current market values, they offer a baseline and can provide details on specific parcels, including land use classifications and historical assessments. Property owners can typically access this information through county websites or by contacting the assessor’s office directly.