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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 (FCI)
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,” says 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.
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“As farmers face economic volatility,
it’s especially important to engage in proactive communication with
your lender to be properly supported through challenging times,”
says 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
About Farm Credit Illinois
Farm Credit Illinois (FCI) is an agricultural financial cooperative
owned by more than 17,100 farmer, rural landowner, and agribusiness
voting stockholders in the southern 60 counties of Illinois.
Dedicated to Helping Farm Families Succeed, FCI provides competitive
and flexible financing, crop insurance expertise, and Rural 1st®
country life lending. FCI manages an $8 billion loan portfolio,
sells 1.5 million acres of crop insurance coverage, and employs
approximately 300 staff in the Mahomet headquarters and 14 regional
offices. The Association returned $35 million of 2024 earnings as
cash patronage to member-borrowers in June. The U.S. Farm Credit
System is a network of locally owned cooperatives supporting rural
communities, farm families, and agriculture with reliable,
consistent credit and financial services today and tomorrow. |
