Nebraska net farm income is projected to rise 12% in 2026 to a record $9.96 billion, according to the latest projections from the University of Nebraska-Lincoln and the University of Missouri.
The projected increase of $1.10 billion over 2025 levels is being driven by higher government payments, continued strength in the livestock sector and a rebound in crop receipts, according to the Spring 2026 Farm Income Outlook for Nebraska.
Nebraska’s outlook differs from the national picture, with U.S. net farm income projected to remain flat or decline slightly in 2026. The report credits Nebraska’s stronger outlook to high livestock receipts and the large impact of government payments within the state.
Government payments in Nebraska are projected to increase 71% to $2.97 billion in 2026, up $1.24 billion from the previous year. The increase is tied to higher Title I commodity program payments under the One Big Beautiful Bill Act and additional ad hoc assistance programs.
Brad Lubben, agricultural policy specialist with Nebraska, said the record projection does not necessarily mean producers are seeing strong profitability at the farm level.
“Strong cattle prices and higher government payments are helping push Nebraska’s projected farm income to a record level in 2026,” Lubben said. “At the same time, production expenses are also projected to reach a record high. That means many producers may still be working with tight margins, even in a year when the aggregate income number looks very strong.”
Livestock receipts in Nebraska are projected to rise 3% to $23.55 billion in 2026, an increase of $708 million. Cattle receipts are expected to account for most of that growth, climbing 5% to $21.52 billion. The report said continued tight cattle supplies and stable marketings of heavier cattle are supporting higher prices.
Crop receipts are also projected to improve after three straight years of declines. Total crop receipts are expected to increase 4% to $12.01 billion.
Corn receipts are projected to rise 5% to $7.86 billion, supported by stronger prices and inventory sales from the record 2025 crop. Soybean receipts are expected to increase 4% to $3.08 billion.
“The crop side of the outlook is important because it marks a positive change from the past few years,” Lubben said. “That does not mean margins suddenly become easy, especially with fuel, fertilizer and other costs still elevated, but it does point to some improvement in the revenue picture for crop producers.”
Production expenses are projected to climb 3% to a record $30.37 billion in 2026, up $829 million from 2025. Higher purchased livestock expenses, fuel costs and fertilizer costs are expected to drive the increase.
Purchased livestock expenses are projected at $10.55 billion, up 5% from 2025. Fuel and oil expenses are projected to increase 26% to $903 million, while fertilizer expenses are expected to rise 4% to $2.25 billion.
Looking ahead, the report projects Nebraska net farm income will decline 12% in 2027 to $8.74 billion. The decrease is largely tied to a projected $1.32 billion reduction in government payments as supplemental and ad hoc assistance programs decline.
“The information in the Farm Income Outlook is intended to help policymakers, industry analysts and agricultural practitioners understand the expected profitability of the state agricultural sector and the factors driving it,” said Alejandro Plastina, director of the Rural and Farm Finance Policy Analysis Center at Missouri. “For 2026, the Nebraska outlook points to strong aggregate income, but also continued exposure to high costs, policy uncertainty and changing market conditions.”
The report noted projections could change depending on shifts in production expenses, cash receipts or additional government assistance programs.