Illinois farmland values rose sharply from 2020 to 2023, then held steady or eased slightly through 2025, even as farmer returns fell and turned negative on many cash‑rented acres. Excellent‑productivity farmland climbed 57 percent during the upswing, then declined only 5 percent from its 2023 peak.
Cash rents followed a similar pattern, rising quickly during strong return years, then barely adjusting downward when returns weakened.
Federal programs, including crop insurance, ARC and PLC, and recent ad hoc assistance, continue to buffer income and slow cost‑structure adjustments across Illinois agriculture.
These dynamics explain why farmland prices have not retreated meaningfully and why rent negotiations remain tight heading into 2026 for our Midwest reporting state of Illinois.
Farmland values across Land Sales Bulletin’s Midwest reporting region continue to show steady, resilient performance heading into Summer 2026, according to Hertz Farm Management’s latest update.
Iowa remains stable, with farmland values increasing 1.3% from September 2025 to March 2026 . Over the past 12 months, Iowa posted a net 0.3% gain after a brief dip earlier in 2025.
Illinois shows a choppy‑sideways trend. “Excellent” quality land declined 3%, while “Good” and “Average” land remained flat and “Fair” land increased 2% . Despite near‑term caution—61% of respondents expect prices to decline in 2026 —values remain 49–54% above 2020 levels.
Nebraska cropland values softened, declining 1–3% statewide, while grazing land rose up to 7% on strong cattle prices . Overall agricultural land values fell 1% year‑over‑year, marking a second consecutive annual decline.
Minnesota remains resilient, with modest increases in non‑irrigated cropland prices and ranchland rents, while irrigated rents declined . Lenders remain cautious, with 64% expecting farm incomes to decrease in the year ahead.
Across the Corn Belt, limited land supply, steady buyer interest, and stable long‑term fundamentals continue to support values despite tighter margins and broader economic volatility. Read more from Hertz Farm Management:https://www.hertz.ag/blog/detail/farmland-values-update-summer-2026
Hertz Real Estate Services’ June 2026 Farmland Market Update highlights a land market that remains steady across the Corn Belt, even as producers navigate tighter margins and shifting interest‑rate expectations. Hear from their President, Doug Hensley, shares the latest on farmland values, current market conditions, and key factors influencing the land market – Hertz Farmland Market Update Videos
Across the Midwest, Land Sales Bulletin’s finalized land sale data reflects the same trend: resilient pricing for top‑tier cropland across our Corn Belt states. While softer commodity prices and elevated input costs are creating pressure, neither has meaningfully disrupted the market’s underlying strength.
As both a trusted customer and a leading voice in the farmland industry, proud to share Hertz’s latest update. Make sure to sign up to have their Farmland Market Updates land in your inbox: https://www.hertz.ag/subscribe
Illinois farmland sales remained steady through the first quarter of 2026, with more than 10,190 acres changing hands and total reported sales topping $103.5 million. Most transactions clustered between $10,000 and $13,000 per acre, reflecting a balanced, stable market despite broader economic pressures.
One of the most notable trends was the continued strength of smaller tracts under 80 acres, which averaged $11,443 per acre, outpacing larger farms by roughly $640 per acre.Local farmers remained the dominant buyers, accounting for 57% of purchases statewide.
Top-end parcels continued to command premiums, with several sales exceeding $20,000 per acre in counties such as Hancock, Effingham, and Christian. While market signals point to ongoing volatility, Illinois farmland values overall remain supported by strong local demand and consistent pricing. Successful Farming: Illinois Farmland Sales Top $103 Million in Q1 as Small Tracts Outpace Larger Farms
As always, Land Sales Bulletin, reporting finalized land sales across its 10‑state Midwest region—including Illinois—continues to track these trends to keep buyers, sellers, and advisors informed.
The Chicago Federal Reserve’s latest AgLetter shows that Midwest farmland values continue to demonstrate steady resilience heading into 2026. According to Seventh District data, agricultural land values were up 3% from a year earlier in the first quarter, even as “good” farmland saw a slight 1% dip from Q4 2025.
Surveyed lenders reported lower demand for farmland purchases compared with the same period last year, and the amount of farmland for sale also declined heading into early spring. Acreage sold followed the same trend, with fewer farms and fewer acres changing hands year over year.
Cash rents softened across much of the region, with the District seeing a 3% decrease in 2026—the second consecutive annual decline. State‑level shifts varied: rents were up 2% in Indiana, but down in Illinois, Iowa, and Wisconsin.
Credit conditions weakened as well. Lenders reported lower repayment rates, higher renewals and extensions, and continued strong demand for operating loans—now up for the tenth straight quarter. Nearly 17% of borrowers carried more debt into 2026 than the prior year. Read more: https://www.chicagofed.org/publications/agletter/2025-2029/may-2026
For Land Sales Bulletin’s Midwest reporting region—Illinois, Indiana, Iowa, Michigan, Minnesota, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin—these findings reinforce what our weekly finalized sales continue to show: a market adjusting to tighter credit and softer rent structures, yet still anchored by long‑term demand and the enduring strength of Midwest agriculture.
Illinois farmland sales remained strong in March 2026, with more than 4,100 acres changing hands and total transactions exceeding $40.4 million. Activity spanned key agricultural counties including Grundy, Hancock, and McLean, where high-quality Class A tracts continued to draw competitive bidding from both local operators and investors.
Notable sales included two 120.52‑acre tracts in Grundy County that sold for $16,900 per acre, reflecting strong demand for highly productive soils with PI ratings above county averages. In Hancock County, a 138.69‑acre tract sold for $7,775 per acre, supported by strong organic matter and fertility advantages. McLean County saw 72.55 acres sell for $15,600 per acre, backed by strong yield history and solid soil productivity.
Market analysts note that despite higher interest rates and elevated input costs, Illinois farmland values remain resilient. Limited supply, strong balance sheets, and steady investor interest continue to support pricing across the state—one of Land Sales Bulletin’s 10 Midwest reporting states. Read more from Successful Farming: Illinois Farmland Auctions Bring Over $40 Million in March
Illinois farm managers expect farmland values to soften slightly in 2026, with most anticipating a 1%–5% decline and some projecting up to 10%. According to the Illinois Society of Professional Farm Managers and Rural Appraisers, excellent farmland averaged $15,846 per acre in 2025, down 3% from the prior year, while good‑quality land held steady. Recreational land, however, saw an 11% increase.
Shifts in cash rent expectations, tighter farmer liquidity, and broader economic pressures—including fertilizer costs and global conflict—are shaping the outlook. As Illinois remains a core state within Land Sales Bulletin’s 10‑state Midwest reporting region, readers can track verified sales and market trends across the region with consistent, county‑level detail.
New survey data from the Illinois Society of Professional Farm Managers and Rural Appraisers (ISPFMRA) points to a steady and resilient leasing environment across Illinois farmland—an important signal for landowners, operators, and investors watching the Midwest market. As one of Land Sales Bulletin’s 10 Midwest reporting states, Illinois continues to demonstrate strong rental demand even as broader price expectations soften.
Cash Rents Hold Firm in 2026 – Survey results show that professionally managed farmland maintained strong cash rent levels for 2026.
Excellent soils: Middle-third rents average $375/acre, with top-tier agreements reaching $400/acre.
Good soils: Average $325/acre.
Average soils: $273/acre.
Fair soils: $200/acre.
Despite slight declines in 2025 landlord incomes—particularly on cash‑rented acres—operators continue to compete aggressively for high‑quality ground, keeping rents elevated across productivity classes.
Leasing Performance in 2025 – Returns varied by lease structure:
Custom farming delivered the highest 2025 returns at $375/acre on excellent soils.
Cash rent averaged $300/acre.
Crop share averaged $250/acre, buoyed by strong yields and lower input costs.
These dynamics help explain why cash rents remain strong even as land values show signs of leveling.
Expectations for 2027 – Farm managers express cautious optimism:
67% expect 2027 cash rents to remain unchanged from 2026.
9% anticipate increases.
24% foresee modest softening.
Overall, the data points to a stable leasing market with limited downside pressure.
Why This Matters for Midwest Land Professionals
Illinois—one of our core reporting states—continues to set the tone for leasing trends across the Corn Belt. Strong operator demand, tight supply of high‑quality acres, and steady income expectations reinforce the importance of finalized sales and rental data when evaluating market conditions.
Illinois farmland values are entering a period of stabilization after several years of rapid appreciation. According to the latest ISPFMRA survey, most market participants expect modest softening in 2026, driven by tighter crop margins, elevated input costs, and a high‑interest‑rate environment. While 61% of respondents anticipate slight price declines, long‑term confidence remains strong, with 77% expecting higher values within five years. Transaction volumes are also cooling, and private treaty sales are regaining ground as buyers seek flexibility in a shifting market.
As one of Land Sales Bulletin’s reporting states, Illinois continues to demonstrate the importance of timely, accurate, and completed land sale data in understanding market sentiment and tracking regional trends across the Midwest.
American Farmland Owner reports on the New Federal Reserve surveys that show farmland values across the Midwest held steady or increased in 2025, reinforcing the strength of the region’s land market even as farm finances weakened.
For those following Land Sales Bulletin’s 10-state Midwest region—Illinois, Indiana, Iowa, Michigan, Minnesota, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin—the data highlights continued stability:
Chicago Fed District: Farmland values up 6% year over year
Indiana +9%
Wisconsin +9%
Iowa +7%
Illinois +3%
Kansas City Fed District:
Non‑irrigated land: –0.3%
Irrigated land: +1.2%
Ranchland: +4.1%
At the same time, repayment challenges increased, more banks tightened credit standards, and interest rates—while easing—remain above long‑term averages.
Even with these pressures, Midwest farmland continues to stand out as one of the most stable assets in the agricultural economy. Read more: americanfarmlandowner.com
