A semi exits Mackinaw Grain in Tazewell County as another takes on grain in the background. Corn planted reached 74 percent by May 19, while soybeans planted were at 67 percent. Both are ahead of the average planting pace for the state.  (Photo by Tim Alexander) 

Mid-May rains across north-central Illinois did little to alleviate dry conditions in many locations, though some benefitted from up to 5 inches of precipitation. This week we will look at planting progress and conditions, farmland values and farmland property taxes in Illinois. Please read on … 

Farmland values ‘softening’ 

PEORIA — Despite decreasing farm profits in 2023 and 2024, farmland values held firm until the last quarter of 2024 when values began to “soften.”

This was the consensus of professional farm managers at the 2025 Illinois Farmland Values and Lease Trends Conference, presented by the Illinois Society of Professional Farm Managers and Rural Appraisers. 

“Western Illinois sales of Excellent farmland suffered the most significant declines in Excellent farm values. The areas bordered by the Chicago metro area saw increases in all farmlands. In the southern part of the state, farmland sales per acre were steady to considerably higher, with strong sales values reported in the far south,” reported Jill Mients, a University of Illinois Extension commercial agriculture — special projects assistant who did a deep dive into the ISPFMRA farmland values report.  

Farms by soil type showed differences but were inconsistent across various locations, according to the ISPFMRA survey, issued in March. Average sales per acre across the state showed a modest decrease in Excellent soil types and Good soils were, on average, flat to slightly down. Average and Fair soils showed a modest increase in sales values per acre, which was the same trend held for median prices compared to average prices. 

“Farm profits in 2025 will impact future farm values. Interest rate uncertainty, lower grain prices, and trade war concerns will cause headwinds holding back values. A farmland market analysis would be remiss not to compare 1980 to the present. A sharp acceleration of the above-mentioned factors caused the economic devastation of the 1980s farm depression,” Mients cautioned in her May 15 report, “Farmland Values Showing Mixed Signals.” 

Farmland property taxes under scrutiny 

PEORIA — With the Illinois State General Assembly’s spring legislative session wrapping up on May 31, many in agriculture are hoping for passage or advancement of bills that would reform the state’s complicated and, some say, antiquated estate tax and property tax codes. Regarding farm property tax reform, the University of Illinois Extension’s Kevin Brooks noted in a recent news release that government agencies and schools in low-population counties depend more on farm property taxes than those in more urban counties.  

“Year-to-year stability is important, and the current property tax code provides the framework for agricultural economic stability. Farm tax assessments are based on land use under average-level management, the relative productivity of soils, and the present value of the net income assigned to the land from farm production. The profitability of your soils directly impacts how much you pay in farmland property taxes,” Brooks stated in his report, “Understanding Illinois Farmland Property Taxes” published on May 21.  

He went on to explain that higher farm profitability triggers a higher property tax on farms, while lower profitability can reduce the tax burden. “Illinois farm property taxes are determined on a five-year average of farm profitability. Over five years, higher income years can offset a lower farm profit year. There is also a two-year lag, which accounts for the slow adjustment of farm property taxes. 2025 property taxes will be paid on 2024 calculations, accounting for 2023 farm income. Thus, it takes seven years to fully adjust to everchanging farm economic conditions,” Brooks said.  

He recommended farmers contact the Illinois Department of Agriculture or their local county assessor’s office for more specific information about their farm property taxes. 

Timely rains follow planting 

URBANA — Mid- to late May storms across a broad swath of the state helped to alleviate dry soil conditions in crop fields that received adequate rainfall. Some locations, such as LaSalle County, received so much rain that ponding was evident in some low-lying crop fields.  

“It has been a wet and chilly week following the hot, dry weather last week,” said Emily Hansen, LaSalle County Extension commercial crop educator, on May 23. “LaSalle County saw nearly 5 inches of rainfall, which has led to ponding in some of the more low-lying areas of fields. Nearly all corn acres are planted, with most corn around stage V1-V2. The most mature corn I observed was at V4. Around 50-60 percent of soy acres are planted/emerged, with earlier planted soy reaching V2.” 

Russ Higgins, Extension commercial agriculture educator for Grundy County, said that though soil conditions had returned to near-normal in his region following mid-May rainfall, the heavy precipitation is causing some issues with soybean emergence.  

“Most planting is starting to wrap up in the region. I visited several soy fields that after an initial rain event went weeks without additional precipitation leading to emergence issues. When visiting the field after recent rains, some emergence is still taking place while other soy seedlings simply couldn’t push through the crusted soil,” Higgins reported in last week’s Crop Central report from Extension. 

The rainfall that fell in north-central Illinois was “not a drought-buster” for everyone, with only around one-half to one-third of an inch recorded from Rockford east to Chicago, according to CBS Chicago Meteorologist David Yeomans. “From Chicago out to Rockford we’re still showing less than half of our normal weekly rainfall for this time,” he said. “Drizzle and light rain is not very beneficial to 8-inch and 20-inch soil moisture levels, which are still suffering.” 

According to the May 19 USDA-NASS Illinois Crop Progress and Condition report, corn planted in Illinois had reached 74 percent, compared to the five-year average of 77 percent. Corn emerged had reached 54 percent, compared to the five-year average of 48 percent. Soybeans planted were at 67 percent, compared to the five-year average of 64 percent. Despite problems with crusting and emergence in some areas, soybeans emerged reached 45 percent, compared to the five-year average of 33 percent.  

 Illinois Farm Fact: 

In Illinois, farmland productivity, and resultantly farmland tax assessment, is based on Bulletin 810, which assigns index numbers relative to soil productivity. (U of I Extension/K. Brooks)