Illinois farmland values dropped slightly the first half of 2025, according to the Illinois Society of Farm Mangers and Rural Appraisers.
Its mid-year survey of members and other farm real estate professionals find 31% of survey respondents note values had not changed. The remaining 69% of respondents report the following declines: 2.2% for excellent quality farmland; 3.5% for both good and average quality land; 3.0% for fair quality land.
Some 61% of sales were estate settlements; 11% were local investors and 10% were farmers. The balance was non-local investors, institutions, and ‘others.’ Buyers were predominately farmers (61%) with local investors at 17%; non-local investors and institutions at 10% each; 2% “others.”
University of Illinois’s Gary Schnitkey, who conducts the survey, notes 11% of the sales involved farmers with financial difficulties. He also states foreign investors accounted for 15% of the transactions.
In addition to the reported drop in prices paid, most respondents expect farmland prices to decline slightly or remain stable during the second half of 2025: 49% expect declines of less than 3% and 33% look for prices to remain the same. The remaining 18% expect farmland values to decline by more than 3%. This comes as 76% expect lower interest rates during the second half of 2025.
Some 73% of respondents anticipate more sales going forward will occur through listings rather than auctions. Transactional history shows listings are often preferred in stable or declining price environments, ISPFMRA comments.
As for 2027, those responding see a flat market with 24% expecting higher prices, 44% percent anticipate steady values while 33% look for further declines in prices paid.
Cash Rents to Drop
Most farm managers expect 2026 rents to be lower than 2025 rents by between $15 and $20 per acre. On a land quality basis, rents for excellent land are forecast to drop from $391 per acre to $374; Good quality land will drop from $337 to $316; Average land will drop from $275 to $259; Fair land will drop from $225 to $209.