Illinois farmland values experienced their first decline since 2018, falling an average of 4.41% across central and southern counties, according to Farm Credit Illinois’s annual benchmark study.

The downturn marks the end of six consecutive years of growth, during which values reached record highs in 2024.

The decline affects the majority of tracked properties, with 14 of the 22 benchmark farms decreasing in value while only six increased and two remained unchanged. Individual farm value changes ranged dramatically from a 13.64% decrease to a 27.39% increase.

Economic pressures are mounting on farm operations across the region. Higher interest rates, elevated input costs, and sustained low commodity prices have collectively weakened farmer financial positions. Kent Reid, Farm Credit Illinois chief appraiser, noted that these factors have “negatively impacted net farm income and working capital” despite stable demand for Illinois farmland.

The current decline represents a significant shift from recent market dynamics. Farmland values had increased dramatically from 2003 until peaking in 2014, followed by slight declines from 2015 through 2018. The recovery that began in 2019 accelerated during the pandemic, with particularly strong gains of 27.9% in 2022 and 8.1% in 2023.

This pattern mirrors broader Midwest trends, with Iowa reporting a 3.1% decline in 2024 that brought average prices to $11,467 per acre. Nebraska also experienced decreases, with cropland values down 0.50% since January and 1.20% compared to the previous year.