Prices paid for Illinois farmland continue the “slightly lower” trend, according to the mid-year snapshot survey conducted by the Illinois Society of Professional Farm Managers and Rural Appraisers (ISPFMRA).
“In the first half of the year, the value of excellent-quality farmland is down two percent and average-quality land is down one percent,” said David Klein, of Soy Capital Ag Services, who chairs ISPFMRA’s farmland values program.
Survey results released last month indicate the statewide average price for excellent-quality land dropped roughly $200 per acre the first half of the year to $10,522. Prices for other land classes were down less than $100.
Klein noted fewer acres are changing hands, leading to a tight supply of land on the market. Survey respondents expect that trend to remain in place through 2018.
“Our survey somewhat confirms the survey from the Federal Reserve Bank of Chicago released earlier (in August), which showed (farmland) prices level to slightly higher in the first half of 2018 and is an indication of both the somewhat level nature of prices paid and the regional bias of each group’s respondents,” Klein said. “Location and local ownership continue to be major factors in the strength or weakness in many areas.”
Meanwhile, survey respondents expect cash-rent levels to decline due, in part, to lower commodity prices and tighter farm margins.
Cash-rent averages could decline from $305 to $290 per acre for excellent land, from $265 to $250 per acre for good ground, $220 to $210 for average land and from $185 to $175 for fair farmland. ■