Illinois farmland values in 2026: volatile signals

Farmland sales in Illinois are continuing their recent pattern of being unpredictable. Low farmer profits are the main driver of this volatility, but other factors also weigh on the marketplace.

University of Illinois farmdoc corn and soybean budgets continue to show negative returns. With input and machinery costs rising while grain prices are low, farmers rely on government subsidies to maintain balance sheet stability.

The current war with Iran has the potential to severely cripple farmers with higher fuel, fertilizer and interest rates.

Even if the war ends soon, the impact of hostilities will likely create concerns among farmers about having enough working capital, or available cash, especially in 2027 and beyond.

Still, the farmland market has shown remarkable stability to this point. The number of farms for sale and the number of buyers are key components of land values.

For more information on crop budgets: tinyurl.com/Illinois-Crop-Budgets-for-2026.

Location Is Key

A farm’s location serves as a key benchmark for its valuation. Northeastern Illinois has shown stable land values across all soil qualities.

Excellent or prime farmland continues to sell in the $19,000 to low $20,000 per acre range on occasion.

Livestock production areas can see high land values even on lower-quality land, but these higher-value sales are the exception, not the norm. The selling price has shown a noticeable range.

The following data reflect 2025 land values, except where noted, based on recent activity. Using the Productivity Index, University of Illinois Bulletin 811: Excellent soils are rated 133 or more; good, 117 to 132; average, 100 to 116; and fair, 100 or less.

In simpler terms, excellent soils are prime farmland with consistently high yields; good soils can produce high yields, but fall off during challenging conditions; average soils yield close to the county mid-range; and a fair rating is consistently below the county average. Southern Illinois has no excellent soils as described in this article.

Farms can perform above or below their soil rating. This rating system is overly simplistic because conditions and practices vary across a given farm.

Factors such as the presence and condition of drainage can have a major impact on yield. However, the ratings serve as an excellent beginning point in assessing the value of a farm.

• Northern Illinois has shown stable land values across land quality — excellent: $14,000 to $16,500; good: $10,000 to $14,000; and average: $8,000 to $10,500.

• Western Illinois has seen downward pressure on land sale values for excellent and good soils, while selling prices have increased on poorer-quality land — excellent: $15,400; good: $11,300; average: $7,900; and fair: $7,000.

• Central Illinois prices ranged from steady to down across all soil type measures — excellent: $13,000 to $18,500; good: $11,000 to $14,000, with lower ranges down to $8,000 in the Decatur area; and fair: $6,000 to $14,000.

• Southwest Illinois, directly east of the St. Louis metro area, has seen steady market activity. Sales values are among the highest in the state near the metro area, which also has strong livestock production. Though land sales for development are not factored directly into these higher values, stiff competition has driven this upward trend in certain locations. Further away from the metro area, sales values are similar to those in central Illinois across all soil types. Higher-end sales values have exceeded $20,000 per acre in certain locations and across a range of soil productivity.

• Southeast Illinois has seen stiff competition for higher-quality land near livestock production, but some weaknesses in lower-quality farmland. A few farm sales east of Effingham have recently exceeded $20,000 per acre, in a livestock-producing area. Discounting the mentioned livestock area, the land values are: good: $12,000; average: $10,500; and fair: $7,800.

• Far southern Illinois farmland values have been overall steady — good: $12,034; average: $9,648 to $6,493; and fair: $6,111.

Other Factors

A closer look at land value trends reveals inconsistencies. The amount of land offered for sale in an area, along with the number of potential buyers, affects the selling price.

Farmers in general are still operating in a very strong financial position, and some are more willing than others to take on the risk of buying land.

If there have been several recent buyers in a local market, recent purchases will naturally diminish demand and thus the selling price.

Within any region of the state, there can be a wide range of interested, cash-strong potential buyers willing and able to take on risk. Strong farmer balance sheets will allow more bidders into the market.

USDA Payments

Payments received by farmers have remained a major source of income for farm operations. These payments have provided some relief to farmers during economic challenges, such as lower grain prices, as well as payments for past trade-war-related impacts. Even though they are small in context, federal payments provided significant support.

Selling And Buying

Farm estate sales accounted for 57% of all farmland transfer transactions, the same as in 2024. Farmers as owners selling land was up from 2024 at 9%.

Selling land to pay off debt accounted for 11% of sales, more than double the previous year’s share. Also 41% of sales in the state were via auction, and 42% through private non-auction sales.

Local farmers still buy most of the farmland listed for sale at 57%. Non-local investors, as a percentage, remained steady at 12%. Sales volume continued a downward trend.

Farmland values in Illinois are facing headwinds, but are still holding in a steady-to-slightly negative pattern across most farmland. The cash strength of farmers will likely be the dominant factor as the calendar moves toward 2027.

Farmer cash strength will depend on input cost inflation and interest rate levels, which may be further impacted by war and government subsidies.