ROCHELLE, ILL. (RFD NEWS) — There are a number of factors influencing agricultural property trends as the fall farmland sales season begins to ramp up.
Accredited Farm Manager Nick Westgerdes with the American Society of Farm Managers & Rural Appraisers (ASFMRA) joined us on Wednesday’s Market Day Report from Northern Illinois with an update on cash rents, land values, and how the method used to sell farmland can affect the final price.
Cash Rent Outlook Improves
In his interview with RFD News, Westgerdes said market-value rents in Northern Illinois are expected to stay mostly the same heading into 2027.
An Illinois Society survey completed in August found members were expecting rents to decrease by about $5 per acre next year. Since then, commodity prices have rallied, making Westgerdes more optimistic that rents will remain steady.
He also shared a recent example of a cash rent bidding auction in Northern Illinois. A farmer who participated expected the winning bid to come in around $300 per acre. Instead, the final accepted bid was $400 per acre for an average farm in central Northern Illinois.
“So it speaks a lot to the supply and demand that we still see, especially as it pertains to rental farmland,” Westgerdes said.
He added that bonus calculations are often part of cash rent agreements. Typically, producers start with a modest base rent and allow the bonus to determine additional payments.
Westgerdes said improving farm economics, commodity markets and yields could support stronger rents in some areas.
Land Values Remain Strong
Westgerdes said fertilizer and fuel markets remain concerns, particularly as producers begin making purchases for next year. He is also watching unrest in the Middle East and hoping for some settling that could help ease those pressures.
As for land sales, Westgerdes said producers continue to make up a large share of buyers.
“As was mentioned last week on the segment, about 70% of farmers who are buyers are still farmers in most areas,” he said.
He said farmland values remain strong in his area, with low- to mid-quality farmland recently selling for $14,000 to $16,500 per acre, about where values were at the same time last year.
Sale Method Can Affect Farmland Auctions
Westgerdes said the method used to sell farmland can make a difference, particularly with auctions.
With an auction, multiple interested buyers are needed to create a successful sale. Without enough competition, the property could end up with no sale or a less desirable price for the seller.
In-person auctions, which were once the norm before COVID, can still create excitement, Westgerdes said. Buyers can see who else is bidding, which can influence their decisions.
“I think from an auction perspective, we’re still pretty safe with the online-only method, sealed-bid auctions, of course, the simulcast auction, which has gained a lot of traction,” he said. “All those methods are definitely still safe in this climate.”
Westgerdes said in-person auctions can create a different environment because bidders can see one another.
“The heart races a little bit faster in that in-person sale as opposed to something online, in my opinion,” he said.
Fewer Transactions Help Support Values
Westgerdes said one factor helping hold farmland values up is the decline in transactions.
Looking at Northern Illinois, he compared 2021 sales with 2025 and found transactions were down about 33%.
“As somebody that’s in the business of helping people transition farmland, that’s a little concerning to see those numbers come down,” Westgerdes said. “But that definitely is helping to hold values up, I think, in my opinion.”
LEARN MORE: www.asfmra.org
