2025 Illinois Society of Professional Farm Managers and Rural Appraisers Mid-Year Survey

Note: In the following, references are made to different qualities of farmland. In a typical year, Excellent quality farmland averages over 230 bushels of corn per acre with a soil productivity index of 133 or higher. Good quality farmland averages 210 and 230 bushels per acre, with a soil productivity index of 117-132. Average quality farmland averages between 190 and 210 bushels per acre with a soil productivity index of 100-116 and no irrigation. Fair-quality farmland averages below 190 bushels per acre with a soil productivity index under 100.

The Illinois Society of Professional Farm Managers and Rural Appraisers conducts a survey halfway through the year to evaluate trends in farmland prices and cash rents. This information supplements the Society’s more extensive efforts at year-end to document farmland prices and cash rents across Illinois.

Key points from the mid-year survey:

Farmland prices softened in the first half of 2025. None of the respondents indicated that farmland increased, but a significant portion indicated stable prices.
Survey respondents expect farmland prices to decline during the second half of 2025. Those declines are expected to be modest.
Cash rents are expected to decline by $15 to $20 per acre in 2026. Cash rents increased from 2000 to 2023, and declined in 2024 and 2025.
Lower commodity prices are driving farmland price and rent declines. Participants expect sales of the 2025 crop to average $3.95 per bushel for corn and $9.95 per bushel for soybeans.
Over time, Society members have slowly increased their use of variable cash rental arrangements, so that 34% of the leases are now variable cash agreements. That increase is expected to continue.
Wind and solar contracts continued to be entered into during the first half of 2025. Ongoing wind and solar contracts increased the attractiveness of farmland that is sold.

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Farmland Prices and Sales during the First Half of 2025

According to survey respondents, farmland prices declined from January 1 to July 1. Declines were 2.2% for excellent quality farmland, 3.5% for good and average quality farmland, and 3.0% for fair quality farmland. 31% of the respondents indicated no change in farmland price from the beginning to the end of the year.

The Survey indicated this distribution of farm buyers:

61% were farmers,
17% were local investors,
10% were non-local investors,
10% were institutions, and
2% were other.

The Survey indicates this distribution of farmland sellers:

67% were estate sales,
10% were farmers,
11% were local investors,
7% were non-local investors,
4% were institutions, and
1% were others.

Of respondents, 11% were involved in a sale involving a farmer with financial difficulties.

Of respondents transacting real estate, 32% had a transaction with an institutional investor.

Of respondents transacting real estate, 15% had a transaction with a foreign investor.

Expectations of Farmland Prices during the Second Half of 2025

Most respondents expect farmland prices to decline slightly or remain stable during the second half of 2025: 49% expect declines of less than 3% and 33% expect prices to remain the same. The remainder, 18%, expect farmland prices to decline by more than 3%.

Of the respondents, 76% expect lower interest rates during the second half of 2025.

Of respondents, 73% expect more sales to be listings rather than auctions. Listings are often preferred in stable or declining price environments.

Respondents are divided on expectations of farmland price in 2 years (2027): 23% expect higher farmland prices, 44% expect the same, and 33% expect lower. Directions of farmland prices are uncertain.

Cash Rents in 2026

Most farm managers expect 2026 rents to be lower than 2025 rents by between $15 and $20 per acre.

Respondents expect market prices for the 2025 crop to be:
- $3.95 per bushel for corn, and
- $9.95 per bushel for soybeans.

Of respondents, 76% expect another round of ad hoc disaster payments similar to the Emergency Commodity Assistance Program (ECAP) payments for the 2024 crop. These payments

are outside the legislated PLC and ARC payments.

Rental Arrangements

Respondents indicated the following use of alternative farmland leases:

21% are share rent leases,
14% where modified share rent leases,
25% are cash rent leases,
34% are variable cash rent leases, and
6% are custom farming arrangements.

Over time, variable cash rents have increased, and share rent leases have declined.

Farm managers continue to see stability in farm lease arrangements into 2026, but with a continuing trend to more cash leases and fewer share rent leases.

The average supplemental rent on a share rent lease is $31 per acre.

Variable Cash Rent Arrangements

For variable cash rents, the most common cash rent has a base cash rent regardless of prices, yields, or incomes. A bonus payment is entered into the calculation based on revenue.
- 88% of variable cash rents have a base rent that is paid regardless of prices, yields, or incomes,
- 77% have a payment if revenue exceeds specified levels,
- 6% have a payment based on price,
- 6% have a payment based on yield, and
- 14% have costs of production enter the calculations of rent.

Farm yields are used in 91% of the cases when yields enter rent calculations. County yields are used in the other cases.

When price enters rent calculations, multiple prices at delivery points are the most common method for arriving at the price.
- 59% of leases use multiple prices at a local delivery point,
- 34% use futures prices, and
- 6% one price at a delivery point.

Crop insurance and/or government payments are used to calculate rent payments in 31% of the leases.

When gross revenue is used to calculate a bonus, the average percentage is 35% for corn and 39% for soybeans.

Most respondents are satisfied with the performance of variable cash leases:
- 50% indicated they were very satisfied,
- 47% indicated they were satisfied, and
- 3% indicate they are dissatisfied.

Most respondents are satisfied with the performance of variable cash leases:
- 43% indicated they were very satisfied,
- 50% indicated they were satisfied, and
- 6% indicate they are neutral.

Most respondents indicate that variable cash rent arrangements make negotiations easier as compared to fixed cash rent arrangements:
- 25% indicate that negotiations were much easier,
- 58% indicate that negotiations were somewhat easier,
- 12% indicate that negotiations were about the same, and
- 3% indicate that negotiations were harder.

Most respondents indicated that lease terms do not change every year:
- 3% indicate that every year, some terms of the lease change,
- 3% indicate that changes occur every other year,
- 66% indicate changes occur periodically, and
- 28% indicated that lease terms seldom change.

Wind and Solar

Of those who managed farmland, 53% had a farm enter into a wind energy agreement during the first half of 2025.

Of those who managed farmland, 26% had a farm enter into a solar energy agreement during the first half of 2025.

Of respondents who transact farmland, 57% had a farm sold that had an ongoing wind or solar contract. Of those with sale, 63% indicate that the wind or solar contract made the farm more attractive, with the remainder indicating no impact of the wind or solar contract.