By Andi Anderson
Prices paid for Illinois farmland appear to have leveled off, according to contributors to the 2026 Illinois Land Values and Lease Trends Report.
The report was released in March during the annual Land Values Conference hosted by the Illinois Society of Professional Farm Managers and Rural Appraisers (ISPFMRA).
Researchers and survey respondents;indicated;that after several years of;strong growth, farmland values have softened slightly.
Survey results suggest that prices have reached a plateau, with many;anticipating;moderate declines in the near term but improved prospects over the long run.
Survey co-authors Gary Schnitkey, Ph.D., of the University of Illinois, and;Juo‑Han Tsay, Ph.D., assistant director of the TIAA Center for Farmland Research, noted that responses reflect widespread caution. “Survey respondents;indicate;that farmland prices have reached a plateau. About 61 percent of respondents expect farmland prices to decline in;2026. Still, most of the respondents expect farmland prices to increase in the next five years,” they said.
They further explained, “According to the survey, 61 percent of the respondents expect farmland prices to decline in 2026. In total, 50 percent of the respondents expect farmland prices to decline between 0 and 5 percent, while 11 percent expect prices to decline between 5 and 10 percent. Of the remaining respondents, 25 percent expect farmland prices to remain the same while 14 percent expect an increase.”
Actual land sales data from 2025 supports these expectations. Excellent Quality farmland experienced an average price decline of 3.17 percent, falling to $15,846 per acre, while median prices declined 3.18 percent to $15,984 per acre. Average Quality farmland recorded a smaller average decline of 0.60 percent to $9,933 per acre, while median prices dropped 4.01 percent to $9,436 per acre.
Luke Worrell, AFM, ALC, with Worrell Land Services and general chairman of the Farmland Values Survey and Conference, emphasized the continued uncertainty in agricultural markets. He stated, “As you will read [in the Report] there was a lot of activity in Illinois agricultural in 2025… continued movement in a downward direction from the euphoric highs and crazy markets of 2021‑2023… Markets shift on a dime these days for the Illinois farmer.”
Rental markets;remain;stable. Schnitkey and Tsay;observed, “Incomes were about the same for rented farmland in 2025 as in 2026. Cash rents increased slightly going into 2026 and are not expected to decline into 2027.” For Excellent Quality farmland, Traditional Crop Share averaged $250 per acre,;cash rent averaged $300 per acre, and custom farming generated $375 per acre, providing the highest return.
The report also highlights broader economic expectations:
- 81 percent expect the agricultural economy to contract modestly.
- 60 percent expect interest rates to decrease in 2026.
- 72 percent expect corn prices between $4.00 and $4.50 per bushel.
- 69 percent expect production costs to rise in 2026.
Debt continues to play;a major role;in land purchases. Survey respondents estimated that 62 percent of land transactions involved financing, averaging 54 percent of the purchase price.
Farmers;remained;the primary buyers, accounting for 58 percent of purchases, followed by individual investors at 34 percent and institutions at 8 percent.
The complete 2026 Farmland Values and Lease Trends Report is available as a free downloadable PDF at www.ispfmra.org, with printed copies also available for purchase.
Photo Credit: istock-alenamozhjer
Categories: Illinois, Business