R2026-08 Resolution Authorizing a Cash Rent Farm Lease with Craig Hill for Two DeWitt County Farms

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Council Memo Public Works Department No. 2026-09 DATE: 1/20/2026 TO: Honorable Mayor Julie Moore Wolfe and City Council Members FROM: Melissa Hon,Interim City Manager Matt Newell,Director of Public Works Robert Weil,Water Production Manager SUBJECT: Resolution Authorizing a Cash Rent Farm Lease with Craig Hill for Two DeWitt County Farms SUMMARY RECOMMENDATION: It is recommended that the City Council approve the attached resolution authorizing a cash rent farm lease with Craig Hill for two DeWitt County farms. BACKGROUND: The City owns DeWitt County Wellfield(Farm#1)with 120 acres and the city purchased the second DeWitt County Farm(Farm#4) in late 2023 with 82.91 acres. First Illinois Ag Group (the City's farm management consulting firm)recommends that Mr. Hill be retained to farm both properties since he has successfully farmed the wellfield for many years including incorporating the City's sustainability practices into our farming operations. In 2025,the DeWitt Wellfield yielded an average of 74.2 bushels per acre,the highest soybean yield on record and the new farm yielded an average of 242.4 bushels per acre for corn. In both cases,yield was above the US averages for corn and soy,which were 186.0 bushels per acre and 53.0 bushels per acre, respectively. In 2025,net income for Farm#1 was $30,168 and for Farm#4, $24,080. Since the soil quality of both farms is high,the leases are on a cash rent basis,with a bonus rent based on actual crop production and average market price,to maximize City income. Due to recent commodity price increases for corn and soybeans, First Illinois Ag Group also recommends that the base cash rent be increased by $10 per tillable acre to $350 per tillable acre. This will provide the City with slightly more base cash rent income than last year. These rents are typical for cash rent farm leases in our region. Staff has researched the option of organic farming for the city-owned farms and does not recommend that approach for economic and practical reasons. Refer to the attached report from First Illinois Ag Group for additional information. LEGAL REVIEW: The lease was provided to the Legal Department for review on December 31, 2025. PRIOR COUNCIL ACTION: January 16,2024-The City Council authorized a similar Cash Rent Farm Lease with Craig Hill for the DeWitt County Wellfield(Farm#1). January 21, 2025-The City Council authorized a similar Cash Rent Farm Lease with Craig Hill for the DeWitt County Wellfield(Farm#1 and Farm#4). POTENTIAL OBJECTIONS: There are no known objections to this resolution.