Land values holding steady
BLOOMINGTON – Farmland values and rents in Illinois are holding steady across most of the state according to the 2019 Farmland Values and Lease Trends Report released Thursday morning by the Illinois Society of Professional Farm Managers and Rural Appraisers.
The information was discussed at the group’s annual Land Value Conference held in Bloomington.
“2018 brought continued challenges for Illinois agriculture with increasing grain supplies and wide price variation as a result of the most productive soybean crop ever produced by the state,” according to David Klein, AFM, ALC, with First Mid Ag Services, Bloomington, and overall chair of the organization’s annual Land Values Project.
“Most farm incomes continued their retracement from recent historical highs with the high production levels and USDA market facilitation payments keeping farmers profitable. As we begin 2019, farmland seems be holding firm as owners and investors continue to seek this tightly held asset class with its unique investment characteristics in Illinois and other Midwestern states.”
Referencing the complete 126-page Report, Klein says there are pockets of strength and weakness are reported within various regions and different local markets for similar quality land. Location continues to be an important variable. The Report is based on information collected by Illinois Society members working in conjunction with the REALTORS Land Institute and the University of Illinois. The data is reported by 10 geographic regions across the state,
“While values and cash returns to farmland held steady in the higher quality land classifications, there were modest gains in four of the five classes across the state. And while rents remained steady in the better soils, there were reductions in rents on lower quality farmland lacking irrigation. Extremely high soybean yields and market facilitation payments filled the cash flow gap that otherwise would have occurred in farm profitability and likely helped stabilize farmland values as well.”