Renewable energy development continues to influence farmland markets.]
Farmland values in Illinois remained mostly stable during the first half of 2026, according to a survey conducted by professional farm managers and rural appraisers. The findings indicate that land prices were either unchanged or showed only small declines across different farmland quality levels.
Most survey participants expect farmland prices to remain steady through the remainder of 2026. A majority believe values will not change significantly, while only a small share anticipates noticeable increases or decreases. Interest rate expectations have also shifted, with most respondents no longer expecting lower rates soon.
The survey found that farmers continue to be the largest group of farmland buyers, followed by local and non-local investors. On the selling side, estate and succession-related transactions accounted for the majority of farmland sales. Family farm succession planning, the need for cash, and favorable market conditions were among the most common reasons for selling land.
Looking ahead, respondents remain cautiously optimistic about farmland values over the next two years. Nearly half expect prices to be higher by 2028, while many others expect values to remain stable.
Cash rental rates are also expected to remain close to current levels in 2027, with only minor declines projected. Corn and soybean prices for the 2026 crop are expected to average around $4.54 and $11.57 per bushel, respectively.
The survey highlighted ongoing changes in leasing practices. Variable cash rent agreements have become more common, while traditional share-rent arrangements continue to decline. Many farm managers reported that flexible leasing systems help simplify negotiations and improve satisfaction for both landowners and tenants.
Renewable energy development continues to influence farmland markets. Nearly half of respondents reported new wind or solar agreements during the first half of 2026. Interest in battery storage projects is also increasing, and many respondents said renewable energy leases can add value to farmland.
Data center development emerged as another growing trend. More than a quarter of respondents reported being approached about selling or leasing farmland for data center projects. Together with renewable energy investments and 1031 exchange activity, these developments are helping shape future demand for agricultural land.
Photo Credit: istock-alenamozhjer