Illinois Farmland Prices Soar
Illinois farmland values surged 18% through the first half of 2022, but may be leveling off going forward, according to a survey of farm real estate and farm management professionals. The Mid-Year Farmland Values Snapshot Survey, conducted by the Illinois Society of Professional Farm Managers and Rural Appraisers (Society), found prices boomed a consistent 18% for all quality grades of farmland across the state.
The University of Illinois’ Gary Schnitkey, who conducted the survey with Luke Worrell, AFM, ALC, said that more than half of those responding to the survey said they feel that prices have reached a plateau. Some 56% said they expect prices to remain the same during the second half of 2022. Fifteen percent expect prices to decrease between 1% and 3% while 12% expect similar increases. All expect interest rates to increase in the second half of the year, he stated.
Cash rents in 2023 are expected to increase by $17 per acre on excellent productivity farmland, according to the survey. Lower productivity farmland is projected to have lower increases, with fair productivity having an $8 per acre projected increase.
Survey participants expect prices for 2023 crops to average $5.60 per bu. for corn and $13.20 per bu. for soybeans. These prices are a continuation of the strong commodity prices seen since the beginning of 2021, Schnitkey said.
