Farmland sees 20% jump in value

University of Illinois' Gary Schnitkey discusses land values this week in Decatur / CIFN photo.

A survey conducted by the Illinois Society of Professional Farm Managers and Rural Appraisers indicated farmland owners in Illinois saw a dramatic 20 percent increase in land values for the first half of the year.

This was only the fourth time there has been this size of positive change in land values since 1970. The survey results were announced this week during the Farm Progress Show in Decatur. Price increases occurred across the entire state and affected land from all productivity levels. The survey was conducted in mid-August among ISPFMRA members and others associated with farmland sales and valuations.

The upward trend in land values is expected to continue with 78 percent predicting increases, although at a more moderate rate, reflecting a tempered outlook over the next five years. Inflation rates are expected to rise with 49 percent expecting a rise of up to 1 percent while 51 percent feel rates will be stable.

Cash rents in 2022 are also expected to increase by as much as 11 percent over rates paid this year. The use of variable rental agreements is expected to grow. Per acre rental rates for excellent productivity is expected to move upward from $315 to $350. Values on good property will move from $279 to $299.