What $18,300 an Acre Farmland Sales Say About the Central Illinois Market
If you farm or own farmland, you’ve likely noticed a shift in the market over the past year – especially in central Illinois. What was once a red-hot seller’s market in McLean, Woodford or Marshall Counties from 2022-2023 has started to level off. That’s not to say prices have dropped significantly – far from it – but fewer sales and increasing uncertainty in agriculture are having an effect.
Understanding these changes is essential if you’re considering a sale, purchase or estate transition. Here’s a closer look at recent market activity, land types influencing values and the key forces shaping land prices across central Illinois.
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Row Crop Land Remains Strong, but Softer Than 2022–23 Peaks
The majority of farmland in this region is row crop – primarily corn and soybeans – with some pockets of specialty crops such as pumpkins and non-GMO varieties. While record-setting prices were common in the past couple of years, the current market has eased slightly.
Sales topping $17,000-$18,000 per acre are still happening – particularly when a property has a high productivity index (PI) and strong location – but these sales are becoming less frequent. A recent example in southern McLean County saw ground sell for $18,300 per acre, which remains a strong indication of local demand. Still, prices aren’t routinely exceeding $20,000 like they occasionally did during the peak.
What’s Behind the Shift?
Several factors are working together to slow the market’s momentum:
- Rising interest rates are impacting borrowing capacity
- Weaker commodity price forecasts are dampening short-term outlooks
- Higher input costs are cutting into profit margins
- Uncertainty around trade and policy is influencing decision-making
Together, these pressures are causing both buyers and sellers to pause. Fewer listings are hitting the market, and those that do sell are often tied to urgent estate needs or attractive parcels located between interested neighbors.
Notable Sales and Activity in 2024–25
While the number of transactions has slowed, there are still meaningful sales offering insight into current values. In the Downs and Ellsworth areas of southern McLean County, several tracts recently sold:
- $18,300/acre and $17,200/acre for cropland with 140 PI
- $10,600/acre for recreational tracts – an unusually strong showing for non-tillable land in this region
Recreational land isn’t as common in this part of Illinois, but these sales reflect how even wooded or non-tillable tracts can command a premium if they’re in the right location.
Green Energy’s Growing Influence on Farmland Value
In areas east of Bloomington-Normal, wind energy is becoming a larger factor. One of the state’s oldest wind farms is located there and initial 30-year turbine lease agreements –historically paying around $8,000-$9,000 per year per turbine – are approaching expiration.
New turbine installations are paying significantly more – $30,000-$40,000 annually in some cases – adding considerable value to the land. With discussions of repowering older turbines underway, this could mean even greater income potential for landowners under new contracts.
As for solar, development is ongoing, but no recent farmland sales with active solar contracts have occurred in this specific market area. Still, with the size of lease payments involved, future sales could carry notable premiums.
Limited Sales Volume Tied to Cautious Outlook
Farmland isn’t moving as frequently in 2024 and early 2025 as it did in prior years. Some of this slowdown may be due to market caution – owners waiting out the current uncertainty. In many cases, those who were planning to sell did so during the highs of 2022 and 2023.
With planting season underway, land transactions typically pause until harvest. As row crop acres are seeded, fewer parcels hit the market, meaning the volume of new comps for appraisal purposes is expected to remain low through summer.
The Role of Appraisals in a Shifting Market
In a market shaped by volatility and location-specific drivers, having a clear understanding of your land’s value is critical. Whether you’re planning an estate transition, exploring refinancing options or considering a sale, a professional appraisal can provide clarity and confidence.
Compeer Financial’s appraisal team brings local expertise and deep knowledge of ag markets. Services are tailored to meet the needs of landowners, farmers, attorneys and financial professionals across the region.
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