The 2026 Land Values and Lease Trends Report saw a shift in narrative from recent years, with 61% of survey respondents expecting a decline in farmland prices this year, signaling a potential plateau in the market.
However, the report, conducted annually by the Illinois Society of Professional Farm Managers and Rural Appraisers (ISPFMRA), indicates the downturn could be short lived with most respondents expecting farmland prices to increase in the next five years. And prices are still substantially higher than historical averages.
Class A farmland in Illinois was down 3% for calendar year 2025, Class B was unchanged and Class C, Class D and recreational land were all up on average.
“I think at this time last year we would have probably predicted a steeper decline than 3%,” Luke Worrell with Worrell Land Services in Jacksonville told DeLoss Jahnke with the RFD Radio Network.
“Even with declines in Class A and unchanged values in Class B over two years, we’re still up approximately 50% from where we were prepandemic, which is a huge number.”
Worrell reported several reasons for the moderate decline in Class A values.
“I think Class A went so high up that there was more room to wiggle your way back down,” he said. “I also think as those Class A prices got higher and higher fewer people could afford those costs per acre.”
Worell said with technological advancements, farmers can grow crops on Class B and Class C land more efficiently than decades past.
“Depending on the weather, in some instances on the farms I manage, my Class B farms do just as good, if not better, than a Class A farm,” he said. “Whether we’re looking at furniture, sports cards, or farmland, we’re looking for value.”
Other highlights from the report include:
• Incomes were about the same for rented farmland in 2025 as in 2026. Cash rents increased slightly going into 2026 and are not expected to decline into 2027.
• 60% of the survey respondents expect interest rates to decrease in 2026. Declining interest rates would be expected to positively impact farmland prices.
• 69% of respondents expect input costs to increase in 2026.
• Survey respondents estimated that 62% of land purchases required some form of debt financing. Of those financing with debt, the amount of debt financing averaged 54% of the purchase price.
• Farmers accounted for 58% of the buyers, followed by individual investors (34%) and institutions (8%).
• For 2026, 35% of cash rent arrangements are traditional cash rent followed by traditional crop share and variable cash rent tied at 27% each.
Free digital copies of the full report are available online at ispfmra.org.