Survey: Illinois farmland prices increase slightly
The mid-year survey by the Illinois Society of Professional Farm Managers and Rural Appraisers was released today at the Farm Progress Show in Boone, IA.
John Hawkins
Published: Sep 1, 2010
The price of farmland across the state of Illinois increased only slightly in the first half of 2010 according to a mid-year ‘snapshot’ survey by the Illinois Society of Professional Farm Managers and Rural Appraisers. The results of the survey were released today at the Farm Progress Show.
ISPFMRA conducts a survey half way through the year to obtain general directions on farmland prices and cash rents. This information supplements the Society’s larger efforts at year-end to document farmland prices and cash rents across Illinois. The 2010 mid-year survey also focused on use of variable cash rental arrangements to gain information on this lease type that is growing in use.
Source: Chicago Federal Reserve Bank
Below are the key points from the ISPFMRA survey:
- Respondents indicated that higher quality land values increased slightly during the first half of 2010. For excellent quality farmland, land prices increased by $131 per acre, or 1.7 percent increase. For fair quality farmland, respondents indicated that land values were stable.
- On July 1, 2010, farmland prices averaged $7,665 for excellent quality farmland, $6,639 for good quality farmland, $5,724 for average quality farmland, and $4,646 for fair quality farmland.
- Most respondents expect farmland prices to increase during the next 12 months: 16 percent expect farmland prices to increase over 5 percent and 64 percent expect increases between 0 and 5 percent, meaning that 69 percent expect price increases. Fourteen percent of the respondents expect stable prices while 17 percent expect price declines.
- Most respondents expect corn prices to average between $3.50 and $4.00 for the 2010 crop. Seventy-one percent expect prices between $3.50 and $4.00 while 27 percent expected average prices between $4.00 and $4.50.
- Respondents expect 2011 rents to average slightly higher than 2010 levels, with excellent quality farmland renting on average for $279/acre, up $7 from this year.
Last month, the Chicago Federal Reserve's survey of bankers found that farmland values for the second quarter of 2010 rose 6 percent from the level of a year ago in the Seventh Federal Reserve District. The value of "good" farmland was unchanged in the second quarter compared with the first quarter of 2010, according to a survey of 198 agricultural bankers covering the period from April 1, 2010, through June 30, 2010.
For the third quarter of 2010, 85 percent of the respondents anticipated stable farmland values, and the rest were evenly divided between higher and lower values.
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