Central Illinois farmland values fall for first time since 2018
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By DAVID CAMPHOUSE
After six years of growth, farmland values in central and southern Illinois have taken a downward turn, according to a recent study released by Farm Credit Illinois (FCI).
According to the report, the average value across 22 benchmark farms declined by 4.41% compared to last year—marking the first drop since 2018.
The FCI appraisal team’s annual study show a shift in the agricultural real estate landscape, with 14 of the 22 farms showing decreased values, six posting gains, and two remaining unchanged.
The results of the study were highly influenced by geography. The wide range of year-over-year changes—from a 13.64% decrease to a 27.39% increase—underscored the location-specific nature of farmland valuation.
While no farmland in Scott County was subject to the study, four sites in Morgan and Greene counties were included in the analysis.
Land values had surged from 2003 until peaking in 2014, followed by a modest decline through 2018. The market then rebounded, climbing for six consecutive years and reaching record highs in 2024, but now falling.
“Farmland values in 2025 softened as higher interest rates and low commodity prices have negatively impacted net farm income and working capital,” Kent Reid, FCI chief appraiser, said in an FCI news release. “While farmland transaction volume decreased, demand for Illinois farmland remains stable.”
The report points to a combination of elevated input costs, sustained low commodity prices, and rising interest rates as key factors weakening the financial health of farmers and landowners across FCI’s 60-county territory. The organization warns that the upcoming fall and winter seasons may bring further challenges, urging stakeholders to monitor the market closely.
“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, in the same release. “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.”
For more information, the full report is available at www.farmcreditIL.com/benchmark.
