By Scout Nelson
Nebraska farm income is expected to rise sharply in 2025, according to new projections from the University of Nebraska–Lincoln and the University of Missouri. The state’s net farm income is forecast to reach $8.42 billion, a 42% increase from 2024. This mirrors the national outlook, which predicts a similar gain.
The increase is driven mainly by higher livestock receipts and significant federal payments, even though crop receipts continue to decline. Total farm receipts in Nebraska are expected to rise by $1.85 billion, or about 5%. Livestock receipts are projected to increase by 16%, which is enough to offset a 5% drop in crop receipts.
Producers are expected to receive more than $2 billion in federal payments in 2025. These payments come from economic and disaster assistance programs included in the American Relief Act. Some payments may be delayed into 2026 because of government shutdown delays and continued signups. The outlook report notes that no extra assistance is assumed unless officially approved.
Experts say the numbers show a farm economy that appears strong on paper but still faces challenges. While livestock prices—especially cattle—continue to rise, crop receipts keep falling due to lower corn, soybean and wheat prices. Corn receipts are projected to drop by 3% in 2025, while soybean receipts are expected to fall by 7%. Wheat receipts may decline by more than 30%.
Livestock producers are expected to see some relief through lower feed costs, which are forecast to drop 8%. Fuel and oil expenses are also projected to fall, while fertilizer costs are expected to increase slightly. Production expenses overall, however, are expected to rise 6% to reach a record $30.39 billion.
The report notes several other key trends, including a shift in planted acres. Nebraska corn acreage is expected to grow by 700,000 acres, while soybean acreage will decline by 450,000 acres.
Looking ahead to 2026, net farm income in Nebraska is expected to fall slightly as federal payments return to average levels. Analysts encourage producers to plan ahead and secure enough financial stability to handle tighter margins.
The next Nebraska Farm Income Outlook will be released in the spring, and a webinar covering the details is scheduled for November. Webinar registration, the full report and data tables can be found here.
Photo Credit: istock-alenamozhjer
Categories: Nebraska, Crops, Corn, Soybeans, Livestock, Dairy Cattle