Illinois Farmland Cash Rents Fall for Second Straight Year, University of Illinois Report Shows
The U.S. Department of Agriculture's latest data show Illinois farmland cash rental rates have declined for the second year in a row.
In this week's farmdoc daily, researchers with the University of Illinois analyzed statistics from the USDA's National Agricultural Statistics Service (NASS). According to the report, the average Illinois cash rent stands at $261 per acre in 2026.
That's down slightly from $264 per acre in 2025 and $269 per acre in 2024.
How Do Cash Rents Vary Across Illinois?
Cash rental rates continue to vary widely across Illinois, with higher rents generally concentrated in central and northern parts of the state.
According to the report, average cash rents exceed the statewide average in many counties across central and northern Illinois, while most counties in southern Illinois report average rents below the statewide figure.
The central and northern regions tend to have deep, highly fertile glacial soils with higher productivity. That is a plus for corn and bean farmers. Southern Illinois tends to have less productive soil, lower average crop yields, and more weather stress.
Overall, more Illinois counties recorded rent declines in 2026 compared with 2025 than counties that posted increases.
Macon County, located in central Illinois, reported the state's highest average cash rent at $347 per acre. Union County, in far southern Illinois, had the lowest average at $86 per acre.
How Do Other Midwestern States Compare?
Rental rate trends across the Midwest have been mixed, though most neighboring states have seen modest increases rather than declines.
Iowa's average cash rent fell by $5 per acre year over year. Meanwhile, Indiana, Missouri, Ohio, Michigan, Minnesota, and Wisconsin all reported modest increases ranging from $1 to $8 per acre.
The farmdoc daily report noted that USDA data provide a useful picture of broad trends but do not capture every factor that influences rental rates.
Researchers pointed to the Illinois Society of Professional Farm Managers and Rural Appraisers (ISPFMRA) as another source of information on farmland rental markets in the state. However, they noted that professionally managed farms represent only a subset of all farmland and should not be viewed as representative of every rental situation.
The report explained that rental rates on professionally managed farms are often higher than those on comparable farms because they include management commissions and fees. As a result, the net rent received by landowners is lower than the reported rental rate. Researchers also noted that while rent trends on professionally managed farms generally move in the same direction as broader market averages, the size of those changes is often larger.
What's the Outlook for Cash Rents in 2027?
According to the report, the relatively small declines in Illinois cash rents over the past several years are consistent with the tight profit margins grain and oilseed producers have faced since 2023.
Researchers said expectations from ISPFMRA's midyear survey suggest slight rent declines across all land-quality classes in 2027.
That would continue a trend of falling rental rates, although at a slower pace. Average rent reductions from 2024 to 2025 were roughly $25 per acre, while declines from 2025 to 2026 were generally in the $15 to $20 per acre range.
The report also noted that expectations for 2027 were formed before the recent rally in commodity prices. Survey respondents expected corn prices of about $4.50 per bushel and soybean prices near $11.50 per bushel. More recent pricing opportunities for the 2027 crop are closer to $5 per bushel for corn and $12 per bushel for soybeans.
Even with those stronger price expectations, however, projected farm returns remain below long-term averages. As a result, researchers said the improved outlook does not necessarily support higher farmland rental rates in 2027.
