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The price of farmland in Illinois grew 25% year-on-year, commanding more than $10,300 per acre. This follows a 5% increase in 2021.
High valuations brought a historically significant volume of acreage to the market in 2022, surpassing the previous record in 2021.
These increases were primarily driven by growth in farmer savings over the last three years fueled by high commodity prices, increasing government payments and low-interest rates. These low-interest rates also enabled farmers to obtain larger loans to purchase more land, adding pressure to land values and creating competition for farmland coming to the market.
Farmland is an essential asset for most farmers in terms of value and importance for their long-term success. At FBN®, our team of data scientists and appraisers puts Farmers First® by continuously monitoring the farmland market to provide transparent, timely and actionable insights. We believe that delivering trusted reporting is essential to creating a better farmland marketplace that’s more fair for farmers — whether buying, selling, or refinancing.
This report delivers data-driven insights on trends related to Illinois farmland values by exploring:
Why farmland values increased nationally in 2022
Broad, state-level trends in transaction values and sales volume
A detailed analysis of each of the nine United States Department of Agriculture (USDA) agricultural districts in the state.
Localized analysis is essential for understanding how soil quality, yield, and farm revenue shape farmland values across Illinois. The cost of land per bushel of production helps optimize investment options with higher returns. Similarly, the slope of yield gain helps assess long-term expected yield for a given parcel.
Soil quality is one of the main drivers of farmland values. In Illinois, the Illinois Soil Productivity Index (ILPI) is a widely used index for rating the relative quality of the soils. Using the ILPI, we categorize Illinois's farmland parcels into three soil quality levels, each of them representing an equal total area.
(See Methods section at the end of this post for details about the limits for each soil quality class.)
Because different districts have different average ILPI scores, a different proportion of each of the three soil quality categories is represented in the area. To determine the year-on-year change in value, we compared farmland values from the last six months of 2021 with the same period in 2022.
At the state level, the soil quality with the most significant percentage change was the High class, with 26.0%.
On the other end, the soil quality with the lowest change in price was the Low class, showing a 16.0% difference.
Land values increased in all nine districts. The largest percentage changes were in the East Southeast and Northwest districts, with 34.4% and 31.7%, respectively. The Southeast and Southwest districts saw the smallest percentage change, with 17.6% and 7.2%, respectively.
The highest average land values were observed in Central Illinois, at $13,290 per acre. The lowest average land values were seen in Southeast Illinois, at $5,240 per acre.
Transaction volume was low compared to previous years, being ranked as ninth, out of the last thirteen years. The total area sold was 40.0% lower than the previous year (2021) and 4.8% lower than the last thirteen years' average (2010-2022).
The price of farmland in Illinois grew 25.0% year-on-year, commanding more than $10,300 per acre.
High valuations brought a historically significant volume of acreage to the market in 2022, surpassing the previous record in 2021.
Localized analysis is essential for understanding how soil quality, yield, and farm revenue shape farmland values across Illinois. The cost of land per bushel of production helps optimize investment options with higher returns. Similarly, the slope of yield gain helps assess long-term expected yield for a given parcel.
The Central region is 73.6% cropland and 5.1% grassland/pasture. The primary crops grown are corn and soybeans.
In total, 11,441 ac were sold in Central IL in the last twelve months. This compares to an average of 10,544 ac per year sold between 2010-2022. Most sales occurred in the first quarter of the year — a total of 4,048 ac (35.4% of total annual sales).
One interesting metric is the price per bushel of grain. In this district, the soils with the highest ILPI show a price of farmland per bushel of corn of 71 $/bu. On the other end, the soils with the lowest ILPI show a price of farmland per bushel of corn of 52 $/bu. For soybeans, those values were 225 $/ bu and 161 $/bu, respectively.
Graph showing the relationship between ILPI and land price. Each point is a 2022 season sale, and the line shows the trend.
To calculate the value per ac for a different parcel, multiply the ILPI of the parcel by 195 $/ILPI and subtract 12,995 $/ac. The result is the estimated value of the parcel in $/ac.
Boxes show the distribution of yields. The bottom of the box is the lowest 25% yield, the central line is the median (50%) yield, and the top of the box is the 75% yield. The bottom of the horizontal line is the 10% yield and the top of the horizontal line is the 90% yield.
Average yield for 2015-2021 compared to 2008-2014 for Central Illinois. Crop yields in 2012 were anomalously low due to severe drought and were excluded from calculations.
The East region is 83.7% cropland and 3.6% grassland/pasture. The primary crops grown are corn and soybeans.
In total, 14,798 ac were sold in East IL in the last twelve months. This compares to an average of 15,201 ac per year sold between 2010-2022. Most sales occurred in the first quarter of the year — a total of 4,828 ac (32.6% of total annual sales).
One interesting metric is the price per bushel of grain. In this district, the soils with the highest ILPI show a price of farmland per bushel of corn of 75 $/bu. On the other end, the soils with the lowest ILPI show a price of farmland per bushel of corn of 35 $/bu. For soybeans, those values were 238 $/ bu and 111 $/bu, respectively.
Graph showing the relationship between ILPI and land price. Each point is a 2022 season sale, and the line shows the trend.
To calculate the value per ac for a different parcel, multiply the ILPI of the parcel by 219 $/ILPI and subtract 17,556 $/ac. The result is the estimated value of the parcel in $/ac.
Average yield for 2015-2021 compared to 2008-2014 for East Illinois. Crop yields in 2012 were anomalously low due to severe drought and were excluded from calculations.
The East Southeast region is 65.8% cropland and 6.9% grassland/pasture. The primary crops grown are soybeans and corn.
In total, 8,549 ac were sold in East Southeast IL in the last twelve months. This compares to an average of 13,293 ac per year sold between 2010-2022. Most sales occurred in the first quarter of the year — a total of 3,113 ac (36.4% of total annual sales).
One interesting metric is the price per bushel of grain. In this district, the soils with the highest ILPI show a price of farmland per bushel of corn of 62 $/bu. On the other end, the soils with the lowest ILPI show a price of farmland per bushel of corn of 44 $/bu. For soybeans, those values were 195 $/ bu and 138 $/bu, respectively.
Graph showing the relationship between ILPI and land price. Each point is a 2022 season sale, and the line shows the trend.
In this district, we could not determine a clear relationship between ILPI and farmland value. The R2 is 0.17, which is low and shows that there is too much noise to establish a relationship. Other factors may be affecting farmland values that are not captured by soil quality.
Average yield for 2015-2021 compared to 2008-2014 for East Southeast Illinois. Crop yields in 2012 were anomalously low due to severe drought and were excluded from calculations.
The Northeast region is 45.8% cropland and 6.4% grassland/pasture. The primary crops grown are corn and soybeans.
In total, 10,007 ac were sold in Northeast IL in the last twelve months. This compares to an average of 8,024 ac per year sold between 2010-2022. Most sales occurred in the first quarter of the year — a total of 3,275 ac (32.7% of total annual sales).
One interesting metric is the price per bushel of grain. In this district, the soils with the highest ILPI show a price of farmland per bushel of corn of 66 $/bu. On the other end, the soils with the lowest ILPI show a price of farmland per bushel of corn of 45 $/bu. For soybeans, those values were 220 $/ bu and 148 $/bu, respectively.
Graph showing the relationship between ILPI and land price. Each point is a 2022 season sale, and the line shows the trend.
To calculate the value per ac for a different parcel, multiply the ILPI of the parcel by 170 $/ILPI and subtract 11,473 $/ac. The result is the estimated value of the parcel in $/ac.
Average yield for 2015-2021 compared to 2008-2014 for Northeast Illinois. Crop yields in 2012 were anomalously low due to severe drought and were excluded from calculations.
The Northwest region is 66.7% cropland and 9.1% grassland/pasture. The primary crops grown are corn and soybeans.
In total, 17,569 ac were sold in Northwest IL in the last twelve months. This compares to an average of 15,648 ac per year sold between 2010-2022. Most sales occurred in the first quarter of the year — a total of 5,976 ac (34.0% of total annual sales).
One interesting metric is the price per bushel of grain. In this district, the soils with the highest ILPI show a price of farmland per bushel of corn of 68 $/bu. On the other end, the soils with the lowest ILPI show a price of farmland per bushel of corn of 36 $/bu. For soybeans, those values were 231 $/ bu and 118 $/bu, respectively.
Graph showing the relationship between ILPI and land price. Each point is a 2022 season sale, and the line shows the trend.
To calculate the value per ac for a different parcel, multiply the ILPI of the parcel by 157 $/ILPI and subtract 9,540 $/ac. The result is the estimated value of the parcel in $/ac.
Average yield for 2015-2021 compared to 2008-2014 for Northwest Illinois. Crop yields in 2012 were anomalously low due to severe drought and were excluded from calculations.
The Southeast region is 49.4% cropland and 12.0% grassland/pasture. The primary crops grown are soybeans and corn.
In total, 7,305 ac were sold in Southeast IL in the last twelve months. This compares to an average of 4,831 ac per year sold between 2010-2022. Most sales occurred in the first quarter of the year — a total of 3,044 ac (41.7% of total annual sales).
Graph showing the relationship between ILPI and land price. Each point is a 2022 season sale, and the line shows the trend.
In this district, we could not determine a clear relationship between ILPI and farmland value. The R2 is 0.04, which is low and shows that there is too much noise to establish a relationship. Other factors may be affecting farmland values that are not captured by soil quality.
Average yield for 2015-2021 compared to 2008-2014 for Southeast Illinois. Crop yields in 2012 were anomalously low due to severe drought and were excluded from calculations.
The Southwest region is 42.1% cropland and 11.3% grassland/pasture. The primary crops grown are soybeans and corn.
In total, 3,620 ac were sold in Southwest IL in the last twelve months. This compares to an average of 3,473 ac per year sold between 2010-2022. Most sales occurred in the first quarter of the year — a total of 1,201 ac (33.2% of total annual sales).
One interesting metric is the price per bushel of grain. In this district, the soils with the highest ILPI show a price of farmland per bushel of corn of 41 $/bu. On the other end, the soils with the lowest ILPI show a price of farmland per bushel of corn of 31 $/bu. For soybeans, those values were 124 $/ bu and 95 $/bu, respectively.
Graph showing the relationship between ILPI and land price. Each point is a 2022 season sale, and the line shows the trend.
In this district, we could not determine a clear relationship between ILPI and farmland value. The R2 is 0.03, which is low and shows that there is too much noise to establish a relationship. Other factors may be affecting farmland values that are not captured by soil quality.
Average yield for 2015-2021 compared to 2008-2014 for Southwest Illinois. Crop yields in 2012 were anomalously low due to severe drought and were excluded from calculations.
The West region is 57.4% cropland and 10.0% grassland/pasture. The primary crops grown are corn and soybeans.
In total, 6,173 ac were sold in West IL in the last twelve months. This compares to an average of 10,081 ac per year sold between 2010-2022. Most sales occurred in the first quarter of the year — a total of 2,873 ac (46.5% of total annual sales).
One interesting metric is the price per bushel of grain. In this district, the soils with the highest ILPI show a price of farmland per bushel of corn of 65 $/bu. On the other end, the soils with the lowest ILPI show a price of farmland per bushel of corn of 36 $/bu. For soybeans, those values were 205 $/ bu and 109 $/bu, respectively.
Graph showing the relationship between ILPI and land price. Each point is a 2022 season sale, and the line shows the trend.
In this district, we could not determine a clear relationship between ILPI and farmland value. The R2 is 0.15, which is low and shows that there is too much noise to establish a relationship. Other factors may be affecting farmland values that are not captured by soil quality.
Average yield for 2015-2021 compared to 2008-2014 for West Illinois. Crop yields in 2012 were anomalously low due to severe drought and were excluded from calculations.
The West Southwest region is 60.9% cropland and 7.4% grassland/pasture. The primary crops grown are corn and soybeans.
In total, 9,447 ac were sold in West Southwest IL in the last twelve months. This compares to an average of 12,263 ac per year sold between 2010-2022. Most sales occurred in the third quarter of the year — a total of 2,755 ac (29.2% of total annual sales).
One interesting metric is the price per bushel of grain. In this district, the soils with the highest ILPI show a price of farmland per bushel of corn of 74 $/bu. On the other end, the soils with the lowest ILPI show a price of farmland per bushel of corn of 42 $/bu. For soybeans, those values were 235 $/ bu and 128 $/bu, respectively.
Graph showing the relationship between ILPI and land price. Each point is a 2022 season sale, and the line shows the trend.
To calculate the value per ac for a different parcel, multiply the ILPI of the parcel by 245 $/ILPI and subtract 19,602 $/ac. The result is the estimated value of the parcel in $/ac.
Average yield for 2015-2021 compared to 2008-2014 for West Southwest Illinois. Crop yields in 2012 were anomalously low due to severe drought and were excluded from calculations.
The farmland transaction dataset analyzed in the report was drawn from public deed and property transaction records and enhanced with environmental geospatial data by FBN. Only fair market parcel transactions with >=20 ac and at least 70% area in agriculture land uses (cropland or pasture) were included in calculations.
We used the Illinois Soil Productivity Index to classify soils into three quality tiers, each of them representing an equal total area:
High (ILPI higher than 172)
Medium (ILPI 119 to 133)
Low (ILPI below 119)
Yield trends across regions and soil quality groups were calculated using FBN field-level yield estimates for corn and soybeans. The FBN yield estimates shown here leverage farmer contributed yield data to help identify patterns between yields and data layers including satellite imagery, weather, soil and more. No farmer contributed yield data was used directly in estimating yields by soil and region.
Direct income ($/ac) was estimated for both corn and soybeans to document how both changes in yield and basis across the state may shape farmland values. To estimate direct income, we simply multiply the estimated per acre yield with the typical grain price received around harvest (September-November) in that year, assuming no storage or drying fees.
More information about grain prices can be found on the FBN Profit Center website.
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Any charts and graphs provided are for illustrative purposes only. Any performance quoted represents past performance. Past performance does not guarantee future results.
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