NEFB Report Details Mounting Financial Pressure on Farm and Ranch Families

November 12, 2025 Nebraska News
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LINCOLN, NEB. – Nebraska’s farmers and ranchers are facing mounting financial pressures as interest rates, land values, input prices, and equipment costs continue to climb, according to a new analysis released by Nebraska Farm Bureau (NEFB). The State of Nebraska’s Farm Expenses, prepared by NEFB Economist and Policy Analyst Abygail Streff, outlines how these escalating costs are straining farm budgets and threatening the economic stability of rural communities across the state.

“Farm and ranch families are being squeezed from every direction,” said Mark McHargue, Nebraska Farm Bureau President. “From higher interest rates to dramatic spikes in input and land costs, these aren’t abstract figures, they represent real pressures on family farm operations. Because agriculture drives Nebraska’s economy, when farm families face tighter margins, it impacts every rural community, business, and local government that depends on a healthy agricultural sector.”

 

Key Findings from the Report:

 

  • Interest Rates at Decade Highs – Agricultural loan interest rates averaged 7.29% in 2025, dramatically higher than in recent years. In 2025 and 2026 corn’s interest is forecast to cost around $8.47 and $7.44 per acre. Soybean’s interest is forecast to be around $4.57 and $3.99 in 2025 and 2026, respectively.
  • Land Values and Rental Rates Surge – Real agricultural land values increased by more than 14% between 2024 and 2025, driving up property taxes, insurance, and cash rents. Cedar County now has the highest irrigated cropland rental rate in the state at $355 per acre, more than double the lowest reported rate.
  • Equipment and Machinery Costs Climb Sharply – The cost of farm machinery parts has risen over 69% since 2020, with the price of a part that cost $600 in 1982 now approaching $1,930. These increases place added strain on producers’ ability to maintain and operate essential equipment.
  • Fertilizer Prices Continue Upward Trend – Fertilizer costs per acre for corn are forecast at $161.59 in 2025, a 44.8% increase since 2020, while soybean fertilizer costs have climbed over 60% during the same period.
  • Tightening Margins – While expenses are rising, commodity prices are projected to remain low in 2025 and 2026, leaving producers unable to cover total costs through market returns. Both corn and soybean production are forecast to face negative margins for a second consecutive year.

 

“These expense increases are interconnected and compounding,” said Streff. “Higher land values lead to higher taxes and rents, increased interest rates make financing those costs more expensive, and spikes in input prices erode producers’ ability to remain profitable. The financial environment for Nebraska producers is tightening, and strategic policy responses will be crucial in the years ahead.”

Agriculture is the backbone of Nebraska’s economy, accounting for nearly one-fourth of the state’s GDP. Rising farm expenses have implications well beyond the farm gate, affecting local lenders, equipment suppliers, input dealers, and rural main streets. Loan repayment rates have declined sharply since 2023, while loan demand has remained elevated, signaling increasing financial stress in the countryside.

NEFB continues to push for much needed policy solutions to strengthen Nebraska’s agricultural economy.

“We need policies that help grow markets for Nebraska commodities, including expanded trade, year-round E15 availability, and support for livestock expansion. These cost pressures are real and persistent. A strong farm and ranch economy benefits all Nebraskans,” said McHargue.

The full State of Nebraska’s Farm Expenses report is available here.