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Illinois Farmland Values Decline, Raising Concerns for Farmers
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Springfield, IL – August 19, 2025 – A recent analysis indicates a downturn in Illinois farmland values, fueling anxieties among agricultural producers as they navigate economic headwinds and plan for the 2026 crop year. Farm Credit Illinois reports growing uncertainty within its membership regarding the financial outlook for the sector.
Economic Volatility and Farm Income
Kelly Duitsman Hunt, CEO of Farm Credit Illinois, described the current agricultural climate as “volatile.” She noted a downward trend in farm income following a period of peak profitability. “It’s been on a downward trend, more so in some areas than others,” Duitsman Hunt stated. “there’s a lot of uncertainty, so I think risk and uncertainty are two things that are on people’s minds right now.” This sentiment reflects broader concerns about input costs, commodity prices, and global economic factors impacting the agricultural industry.
Land Value Benchmark Study Reveals Downturn
Farm Credit Illinois’s annual land value benchmark study, tracking 22 farms in central and southern Illinois over nearly two decades, corroborates these concerns. The study revealed that fourteen of the benchmark farms experienced a year-over-year decline in value, while six saw increases, and two remained stable. the average land value across the 22 farms decreased by 4%. This marks the first decline since 2018.
Pro tip: Regularly monitoring land values is crucial for farmers making long-term investment decisions.
Impact on Operating Lines of Credit
The economic pressures are impacting farmers’ financial planning. Duitsman Hunt explained that manny members are facing tighter budgets as they begin to assess their needs for operating lines of credit to finance the 2026 crop. This situation underscores the importance of access to affordable credit for agricultural operations.According to the USDA, access to credit is a critical factor in the financial health and sustainability of farms [[3]].
Benchmark Farm Land Value Changes (2024-2025)
| Category | Number of Farms | Percentage of Total |
|---|---|---|
| Value Increased | 6 | 27.3% |
| Value Decreased | 14 | 63.6% |
| Value Remained Stable | 2 | 9.1% |
| Overall Average Change | – | -4% |
Duitsman Hunt shared these insights while attending the 2025 Illinois State fair, a key event for the state’s agricultural community.
What strategies are farmers employing to mitigate financial risks in the current economic climate? How will these land value trends affect long-term agricultural investment in Illinois?
Long-Term Trends in Illinois Farmland Values
Illinois farmland values have historically been influenced by a complex interplay of factors, including commodity prices, interest rates, government policies, and overall economic conditions. While the current downturn is concerning, it’s important to remember that farmland values have experienced cyclical fluctuations throughout history. Understanding these long-term trends is crucial for making informed decisions about land ownership and investment.
Frequently Asked Questions About Illinois Farmland Values
- What factors are driving the decline in Illinois farmland values? The decline is primarily attributed to economic uncertainty, lower farm income, and rising interest rates.
- How does this impact farmers? Lower land values can affect farmers’ borrowing capacity and overall financial stability.
- Is this a statewide trend? The Farm Credit illinois study focuses on central and southern Illinois, but similar trends are being observed in other agricultural regions.
- What is a land value benchmark study? It’s an annual assessment of farmland values based on a consistent set of properties over time,providing a reliable indicator of market trends.
- Where can I find more facts about farmland values? Resources like the USDA National Agricultural Statistics Service (NASS) and Farm Credit Illinois offer valuable data and analysis.
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