Farm incomes in Illinois in 2025 were higher than in 2024, leaving a somewhat stronger average financial position for the 2,018 farms surveyed by FBFM. Return on assets went from -0.5% to 1%, although available cash fell nearly 40% since 2022.
Farm incomes in Illinois in 2025 were higher than in 2024, which left a somewhat stronger average financial position for the farms surveyed, according to the report published by Farmdoc Daily and prepared by Bradley Zwilling. The analysis is based on data from 2,018 operations enrolled in Illinois Farm Business Farm Management (FBFM).
The group is dominated by grain farms: 1,942 of the 2,018 operations. The smaller groups include 12 hog farms, 27 dairy farms and 38 beef cattle operations. As a result, the averages are heavily influenced by grain performance.
Average working capital as of December 31 was $361,826, down less than 1% from $364,504 a year earlier. Hog farms recorded the highest working capital, at $512,280 on average, while dairy farms showed the lowest, at $173,343, since most of their assets—such as the herd, buildings and land—are classified as noncurrent.
The average current ratio was 2.49, compared with 2.46 the previous year. Beef operations recorded the highest ratio and hog farms the lowest. The recent peak was reached in 2022, at 3.52, nearly 29% above the 2025 level.
Average net worth of the 2,018 operations reached $4,686,916 at the close of 2025, above the $4,472,445 of the previous year. Accrual farm and non-farm incomes exceeded family living requirements, which allowed net worth to increase, further driven by higher land values. Hog farms had the highest net worth, followed by grain farms, while dairy farms recorded the lowest.
The average debt-to-asset ratio was 18.4%, with a range from 7.8% for beef operations to 33% for hog farms. The 17.8% level recorded in 2022 was the lowest in at least two decades.
Average return on farm assets was 1%, compared with -0.5% in 2024. Dairy farms recorded the highest profitability, at 4.9%, while beef operations posted the lowest, at -0.3%. Return on equity in 2025 ranged from -0.8% for beef operations to 4.3% for dairy farms, with an average of 0.1%, above the -1.7% of 2024.
Average operating income was $56,515. Grain farms showed the lowest values, while dairy farms averaged $221,434, reflecting the higher income that livestock operations experienced on average, especially dairy farms due to the much higher price of dairy bull calves.
The interest expense ratio averaged 4.1%, below the 4.2% of 2024, with a high of 7.6% for hog farms and a low of 3.2% for beef operations. The average operating income ratio was 7.8%, below the five-year average of 15.2%, with a range from 28.1% for dairy farms to 7.5% for grain farms.
The depreciation expense ratio averaged 11.2%, indicating the share of production value consumed by the wear of capital assets. Grain farms were close to the average, while hog farms were lower, at 6.8%. The asset turnover ratio averaged 0.20, with dairy farms at 0.27 and beef operations at 0.12.
The report highlights that, on average, 2025 was a somewhat stronger financial year thanks to higher incomes. Grain farms had recorded their highest incomes in 2021 and 2022, which allowed them to build up cash and other assets. However, after three years of lower grain incomes, available cash on the average farm has fallen nearly 40% since 2022, to 2020 levels.
With lower incomes projected for the rest of 2026 and 2027, the author recommends that producers find ways to reduce costs and make efficient use of assets. Careful monitoring of these indicators is essential in an environment of tighter margins in order to make sound financial decisions.
