By Andi Anderson
The Illinois Society of Farm Managers and Rural Appraisers has released its Mid-Year Snapshot Survey of farmland values at the Farm Progress Show. Results show farmland prices have dropped slightly in the first half of 2025, continuing a trend of modest declines.
Survey responses, gathered by Gary Schnitkey of the University of Illinois, show farmland prices fell by 2.2 percent for excellent quality land, 3.5 percent for good and average land, and 3.0 percent for fair land. While 31 percent of respondents reported no change in prices, the majority indicated declines.
Sales were mostly estate-related, accounting for 61 percent of transactions, followed by local investors at 11 percent and farmers at 10 percent. Buyers, however, were mostly farmers, who made up 61 percent, followed by local investors at 17 percent, with smaller shares for non-local investors and institutions.
Notably, 15 percent of transactions involved foreign investors, and 11 percent involved farmers facing financial difficulties.
Looking ahead, 49 percent of respondents expect farmland prices to decline slightly by less than 3 percent in the second half of 2025, while 33 percent expect stability. Most also believe interest rates will decline, which could support the market.
Cash rents are forecast to decrease in 2026 by $15 to $20 per acre. Rents for excellent land are expected to fall from $391 to $374 per acre, with similar declines for good, average, and fair land.
Survey results also highlight a continued shift toward cash rent agreements, with variable cash rents becoming more common. Respondents indicated that variable leases, which combine base payments with bonuses linked to revenue, are generally easier to negotiate and more satisfactory for both landowners and tenants.
Farm managers believe farmland prices may stabilize by 2027, with 44 percent expecting values to remain steady and 24 percent predicting increases. Overall, the survey reflects cautious optimism amid current market pressures.
Photo Credit:gettyimages-lishanskyphotography
Categories: Illinois, Crops, General