Farmland values steady
Illinois farmland values continue remaining at stable levels while other investment options have seen very extreme swings according to the report issued today at a special Illinois Land Values Webinar sponsored by the Illinois Society of Professional Farm Managers and Rural Appraisers.
The Webinar was held in lieu of the annual Conference which was cancelled.
“Farmland remains a stable, safe investment in volatile times such as we’ve seen so recently” was the message from David Klein, AFM, ALC, vice president with First Mid Ag Services, located here. Klein serves as chair of the 2020 Illinois Farmland Values Survey and Conference. “Our survey data show the farmland price trends in the state continues to exhibit a stable pattern with little deviation from a year ago,” he told the audience.
“In our year-end survey we capture the sentiment of what appraisers and farmland real estate brokers believe they are seeing,” Klein continued. “Dr. Gary Schnitkey, at the University of Illinois, polled their observations and outlook in our annual survey the second week of February.
ISPFMRA and RLI (Realtors Land Institute) members monitor the pulse of the Illinois farmland market every day and the information in our Report suggests is there is significant variation between certain local areas within each region of the Illinois farmland market right now. The general opinion of our membership’s survey showed characteristics of a market that remains stable.
“2019 will be a year most farmers will never forget,” Klein explained. “Crop planting challenges across the state left the most unplanted acres since the spring of 1974. Most farm incomes were protected by crop insurance proceeds and USDA market facilitation payments.
“As we begin 2020 farmland values seem be holding firm as farmland owners and investors continue to seek the safety and security of this tightly-held asset class with its unique investment characteristics in Illinois and other Midwestern states. Individual micro-markets of strength and weakness do exist, and this can create opportunities for sellers and buyers. You will notice variations within regions and different local markets for similar quality land. Location continues to be an important variable,” he stated.