First-half farmland values flat to modestly lower

CHAMPAIGN, Ill. — Farmland prices have remained “flat to modestly lower” since the first of the year, according to the Mid-Year Snapshot Survey conducted by the Illinois Society of Professional Farm Managers and Rural Appraisers.

The mid-year survey is done annually as an adjunct to the more extensive Farmland Values and Lease Trends Survey done by the ISPFMRA each spring.

According to survey respondents, statewide average declines were 1.1% for excellent quality farmland, 1.9% for good quality, 2.6% for average quality and 2.3% for fair quality.

Average sale prices statewide were $16,369 per acre for excellent quality farmland, $13,773 for good quality, $10,992 for average quality and $8,700 for fair quality.

Excellent quality farmland averages over 220 bushels of corn per acre in a normal year with a soil productivity index of 133 or higher. Good quality averages 200 to 220 bushels per acre with a soil productivity index of 117 to 132.

Average quality averages 180 to 200 bushels per acre with a soil productivity index of 100 to 116 and no irrigation. Fair quality averages below 180 bushels per acre and has a soil productivity index under 100.

“We typically have between 50 and 75 respondents who are professionals across the state, and we feel this is a good average, a good snapshot, and that’s what we intended it to be,” said Luke Worrell, of Worrell Land Services, Jacksonville, the ISPFMRA Farmland Values Survey and Conference general chairman.

“In the last couple years, we’ve seen marginal softening across all classifications. Of course, this is coming after a euphoric rise in land values from 2021 to 2023. I think you could look at any county in Illinois and there are going to be some discrepancies — location, location, location.”

Results of the survey were released in a University of Illinois farmdoc-hosted webinar on Aug. 27.

Most respondents also expect farmland prices to remain stable during the second half of 2026: 61% expect prices to stay the same, 13% expect increases of less than 3% and 8% expect increases of more than 3%.

Of the remainder, 16% expect declines of less than 3% and a single respondent expects a decline of more than 3%.

Buyers

Farmers continue to be the majority of farmland buyers, representing 55% of the purchasers in the first half of 2026.

Rounding out the buyers are local individual investors, 17%; non-local individual investors, 13%; institutional investors, 9%; recreational and lifestyle, 5%; and other, 1%.

“Largely speaking, the Illinois market across the state is driven by the local producer,” Worrell said.

“I think sometimes the general public might lose sight of that, in my opinion, because you hear about some of the other big buyers or are there foreign investors, but largely it’s local money, and I don’t expect that to change anytime soon.

“Not a single person who responded to this survey reported working on a transaction with a foreign investor. I know that’s a hot topic and it has been for a couple of years, rightfully so, and last year we did have some people who said yes. I believe it was around 14%, 15% last year, and now it’s zero in the first half of 2026.”

Sellers

Estate sales were the dominant seller in the first half of this year at 64%. Other sellers were local investors, 11%; farmers, 8%; other, 4%; and institutional investors, 3%.

Family farm succession planning was the top reason for selling, representing 31% of the sales. Other reasons were the need for cash, 20%; good market price, 19%; 1031 exchange, 19%; adjusting an investment portfolio, 11%; and other, 1%.

“The survey found 3% were involved in a sale tied to farmers’ financial difficulties. We never like to see that number, obviously, but when we did this last year, that was 11%,” Worrell said.

Future Expectations

The survey also asked what respondents expect two years down the road, with 45% expect higher farmland prices, 42% expect prices to be about the same and 13% expect lower. No respondent expected prices to be much higher or much lower.

Listings led auctions in the sale method preference as 49% expect more sales to be via listings rather than auctions, 35% expect the mix to stay the same and 16% expect more auctions.

“Listings include both public listings and private treaty sales, so the comparison is auctions against all other methods of sale; the mid-year survey does not report private treaty transactions separately,” Worrell said. “Listings are often preferred in stable or declining price environments.”

Interest Rates

Of the respondents, 71% do not expect lower interest rates during the second half of 2026, 24% do and 5% are unsure. At mid-year 2025, 76% expected lower rates.