By Andi Anderson
Illinois farmland prices remained largely stable during the first half of 2026, according to a mid-year survey conducted by the Illinois Society of Professional Farm Managers and Rural Appraisers.
Respondents described farmland prices as “flat to modestly lower” between January 1 and July 1, with only small declines reported across all land quality categories.
The survey received responses from 50 farm managers, land brokers, and rural appraisers representing all regions of Illinois. Most respondents reported little change in land values and expect the market to remain stable through the rest of 2026.
More than 60% believe farmland prices will stay unchanged, while only a small percentage expect notable increases or declines.
Expectations regarding interest rates shifted compared to the previous year. Most respondents do not expect lower interest rates during the second half of 2026, reflecting a more cautious outlook for the agricultural economy.
Farmers continued to be the largest group of farmland buyers, accounting for 55% of purchases. Estate and post-estate settlements remained the leading source of farmland sales. Family farm succession planning was the most common reason for selling land, followed by cash needs, favorable market prices, and 1031 exchanges.
Cash rents for 2027 are expected to remain close to 2026 levels, with only minor reductions anticipated. Depending on land quality, average rents are projected to decline by about $3 to $5 per acre. Most farm managers expect little to no change in rental rates.
The survey also showed growing use of variable cash rent agreements. Many farm managers favor these arrangements because they can better reflect changes in crop revenue. Most respondents reported being satisfied with variable cash leases and said they help make rent negotiations easier.
Renewable energy development continued to influence farmland markets. Nearly half of respondents managed farms that entered new wind or solar agreements during the first half of 2026. Battery energy storage projects also gained attention, while active renewable energy leases were reported to increase farmland values in many cases.
Interest from data center developers grew as well. More than one-quarter of respondents said they were approached about selling or leasing farmland for data center projects. Operating farmland and renting it out remained the most common buyer objectives, although renewable energy development and 1031 exchanges also influenced purchase decisions.
Photo Credit: gettyimages-fertnig
Categories: Illinois, Business