Illinois Farmland Values Remain Steady

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Published on August 31 2017 9:32 am
Last Updated on August 31 2017 9:32 am

BY JIM TAYLOR AND JEFF BROWN

Based on a survey of Illinois farm managers and rural appraisers, land values and cash-rent rates on an average basis across the state remained steady through the first half of the year.

“Some of the lower-quality land has probably slipped 3 or 4 percent,” said Dave Klein of Soy Capital Ag Services in Bloomington. “We’re calling Class A land down 1 percent, but to be real honest I can show arms-length transactions are steady.”

The survey found an average price of $10,900 per acre for excellent-quality land. That’s down $200 from last year’s survey. Last week, a sale of Class A farmland in Logan County brought a top price of $12,200 per acre.

The better the quality of land, the higher the demand that remains for it, which is causing prices to drop more slowly. However, for poorer-quality land, the percentage drops from last year are larger, Klein pointed out.

For good-quality land, this year’s survey found an average price of $8,900 per acre, compared with $9,400 last year. Average-quality land came in this year at $6,900 per acre, down from $7,600 last year. Fair-quality land is averaging $5,000 an acre, 14 percent less than last year’s average of $5,800.

According to the survey, 70 percent of the buyers of farmland so far this year have been farmers.

The Illinois Society of Professional Farm Managers and Rural Appraisers (ISPFMRA) released the survey results Wednesday at the Farm Progress Show in Decatur.

Mirroring farmland values, survey participants don’t expect big drops in cash-rent rates – no more than $5-$10 per acre, in fact.

“As we polled the membership of farm managers, they think things are going to be pretty stable on the rental,” Klein said.