By Andi Anderson
A new report by the Illinois Society of Farm Managers and Rural Appraisers (ISPFMRA) reveals that farmland values are softening and rent prices are declining across the state in early 2025.
“2024 was a year of transition. We did finally see some softening in the land market and some downward pressure on rental agreements,” said Luke Worrell, chair of the survey. He emphasized that the final quarter of 2024 marked a turning point in market behaviour.
Excellent productivity farmland dropped by 3.29% from 2023 to 2024, while average productivity farmland showed a 4.45% price increase. The long-term trend suggests that the market is growing more unstable.
Worrell noted, “There have been more ‘no sales’ in the auction world over the last 6 months than we saw in all of 2021–2023 combined.” Market unpredictability is largely due to falling commodity prices, inflation, and interest rate hikes.
Gary Schnitkey, Ph.D., from the University of Illinois, conducted a supporting survey. It found that 64% of participants expect a price drop in 2025, while just 5% believe values will increase.
Farm income data showed that cash rents for excellent farmland averaged $325 per acre in 2024, and custom farming yielded the highest returns at $367 per acre. Income levels dropped from 2023, and expectations for 2026 suggest rents will remain flat or decrease.
For broader access, the ISPFMRA is now offering the 114-page report as a free download from www.ispfmra.org, including clickable advertiser links. Printed copies can be ordered for $20.
This report offers insight into a changing farmland economy shaped by new challenges and shifting investment behaviours.
Photo Credit: istock-alenamozhjer
Categories: Illinois, Business