URBANA, Ill., April 14, 2026 - Cash rents on professionally managed Illinois farmland held steady in 2026 and are expected to remain stable through 2027, according to a new survey from the Illinois Society of Professional Farm Managers and Rural Appraisers, underscoring continued strength in the farmland leasing market despite softer income trends.

The findings highlight a resilient rental market even as farm incomes face pressure from fluctuating commodity prices and elevated input costs. While farmland value expectations have softened, demand for high-quality acreage continues to support lease rates across much of the state.

A closer look at 2025 leasing outcomes shows clear differences across contract structures. Custom farming agreements delivered the highest returns, particularly on top-tier land, where landlords earned up to $375 per acre on Excellent soils. In comparison, cash rent leases generated $300 per acre, while traditional crop share agreements returned $250 per acre.

Notably, cash rent incomes declined year-over-year across higher productivity classes, reflecting margin pressure. Meanwhile, crop share arrangements improved, benefiting from strong yields and slightly lower input costs, aligning landlord returns more closely with production performance.

Cash Rent Variability and 2027 Expectations

Despite softer returns in 2025, negotiated cash rents for 2026 remained firm, particularly on highly productive land. The mid-tier (Mid 1/3) Excellent farmland averaged $375 per acre, while top-tier leases reached as high as $400, reflecting strong competition for premium acres.

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Variability within the same land class remains significant. For example, Excellent land rents range from $320 to $400 per acre, highlighting localized supply constraints and aggressive bidding among operators.

Historical trends show that cash rents were relatively flat from 2016 to 2021 before surging sharply through 2023, followed by moderate adjustments. Entering 2026, the market appears to be stabilizing, with slight gains in top productivity classes.

Looking ahead, industry sentiment points to measured optimism. Survey results indicate that 67% of farm managers expect 2027 rents to remain unchanged, while 9% anticipate increases and 24% foresee potential declines.

This outlook reflects a broader agricultural economy balancing stable land demand with uncertain profitability, where rental rates are expected to hold firm unless significant shifts occur in commodity markets or input costs.