Farmland values lower in Farm Credit Illinois report

MAHOMET, Ill. — Farmland values throughout central and southern Illinois decreased 4.41% on average from last year, according to the 2025 study of 22 benchmark farms by the Farm Credit Illinois appraisal team. This is the first decrease in average farmland values since 2018.

Land values had a dramatic run-up beginning in 2003 until peaking in 2014. The first decline in more than a decade occurred in 2015 and continued a slight decline through 2018.

From that point, land values increased for six consecutive years and hit new highs in 2024.

Fourteen of the 22 benchmark farms decreased in value, six increased and two remained unchanged. Results across all land classes showed considerable variation, reinforcing that agricultural real estate is a location-specific asset.

When considering the individual benchmarks values, the year-over-year percentage changes ranged from -13.64% to +27.39%.

“Farmland values in 2025 softened as higher interest rates and low commodity prices have negatively impacted net farm income and working capital,” said Kent Reid, Farm Credit Illinois chief appraiser. “While farmland transaction volume decreased, demand for Illinois farmland remains stable.”

The 2025 benchmark update for the Farm Credit Illinois territory indicates slight deterioration throughout FCI’s 60-county territory.

The economic health of farmers and farm owners is weakened due to economic pressures on farmers’ financial positions.

Higher interest rates, elevated input costs and sustained low commodity prices have collectively contributed to the decline in farmland values.

This fall and winter are expected to bring additional challenges to the market that warrant careful monitoring for signs of further downward movement.

“As farmers face economic volatility, it’s especially important to engage in proactive communication with your lender to be properly supported through challenging times,” said Kelly Hunt, FCI CEO.

“Farm Credit is taking a proactive approach in sharing consultative expertise with our members. The more aligned we are amid adversity, the more opportunities we can create together in the future.

Read an in-depth analysis in the full report at www.farmcreditIL.com/benchmark.