Unlocking the Value of Illinois Farmland: A Comprehensive Guide to Current Land Prices and Expert Insights - April 2024 Report
Welcome to Our Monthly Illinois Farmland Value Report
In this monthly report, Rachel Tiffany, Land Broker and Auctioneer dives into Illinois farmland values, helping you understand the factors that determine what your farm is potentially worth. Our goal as auctioneers and farmland real estate agents is to provide you with up-to-date information, recent sales data, expert insights, and tips for maximizing the potential value of your farmland sale. Let us answer the questions you have about selling farmland in Illinois. Contact us today for a free consultation.
Understanding Illinois Farmland Values:
Factors Influencing Farmland Values in Illinois
Who is buying farmland?
As a farmland auctioneer and real estate agent, I often get asked about who is buying farmland in Illinois, especially by those who prefer not to sell to entities like China or Bill Gates. The majority of buyers are farmers, making up 59 percent of the market according to the 2024 Farmland Values Lease Trends Report released by the Illinois Society of Professional Farm Managers and Rural Appraisers. This includes 57 percent local farmers and 2 percent relocating farmers. Individual investors who do not intend to farm the land are the second largest group, comprising 30 percent of the buyers. Among these, 17 percent are local investors and 13 percent are non-local investors. Institutional buyers account for 6 percent of the market.
Rachel Tiffany
Auctioneer & Land Broker
Rachel is a licensed real estate broker assistant, auctioneer, and farmland agent in Iowa and managing broker and auctioneer in Illinois specializing in the sale of farm, land, and rural residential real estate. She is a graduate of Iowa State University, where she received a Bachelor’s in Animal Science with a minor in Agricultural Business. She is also a graduate of the National Auctioneers Association Certified Auctioneer Institute (CAI) school in March 2023. Rachel is eager to answer your questions, talk with you about your farm, and help you gain a deep understanding of your options as a seller. If you’re considering selling land, or even just curious about your options for the future, please don’t hesitate to reach out to her.
Email: [email protected] | Phone: 515-954-8063
Recent Farmland Sales Data
Let’s dive into the latest sales data, including county location, land size by acre amount, soil productivity ratings, and sale prices per acre and total price in the table below. By analyzing this data, you can get a clearer picture of how your property may be valued in the current market.
Current Average Price of Farmland in Illinois
• In the month of April 2024, a total of 957.31 acres (of 80% or more tillable farms) was sold in Illinois by the auction sales method.
• The current average per acre price for land in Illinois according to these April sales is $13,375 /acre for farmland.
• The highest selling dollars per acre farm in Illinois in the month of April 2024 sold on April 2nd in Sangamon County, Illinois sold for $22,100 per acre for 80 acres, with a soil productivity index rating of 138.3.
• See full results from all farmland sold by auction this month at the end of the blog.
Market Trends and Future Projections:
Illinois Land Market Trends
Each month we like discuss current trends in Illinois farmland sales, highlighting patterns, emerging opportunities, and potential challenges.
The 2023 Illinois Farmland Values Lease Trends Report, released and presented at the 2024 Conference by the Illinois Society of Professional Farm Managers and Rural Appraisers, indicated a fourth consecutive yearly increase in the average price of all classes of farmland in 2023. The average price per acre for excellent land rose by 5.5% to $16,779, while good quality land increased by 7% to $12,911. Average land saw a 13% increase to $9,198, fair land rose by 14% to $7,000, and recreational land increased by 7% to $5,250. Transitional land surged by 22% to an average of $35,000 per acre. However, the number of sales declined notably from 2022. Most transactions were estate sales (59%), followed by farmer sellers (19%), individuals (12%), and institutions (9%). The majority of buyers were farmers (59%), followed by individual investors (30%) and institutions (6%). Cash rent rates averaged $400 per acre for 2024, down $12 from 2023, reflecting some moderation amidst downward pressure.
Future Predictions for Illinois Farmland Values in 2024
The 2024 Farmland Values Lease Trends Report from the Illinois Society of Professional Farm Managers and Rural Appraisers provides insights into the anticipated trends for Illinois farmland values. Most experts expect stability or slight declines in farmland prices for the coming year. Here are the key predictions:
- Stable or Declining Prices:
- Expectation of Stability: 32% of respondents believe farmland prices will remain the same in 2024.
- Expectation of Decline: 64% of respondents predict a decline in prices, with 49% expecting a decrease of less than 5%, 13% anticipating a decline between 5-10%, and only 2% foreseeing a decline of over 10%.
- Factors Influencing Price Trends:
- Corn and Soybean Prices: The primary reason behind the expected decline in farmland values is the anticipated decrease in corn and soybean prices.
- Cost Dynamics: Declining crop prices are not expected to be offset by similar decreases in costs, contributing to the cautious outlook for farmland values.
- Agricultural Economy:
- Contraction Expectations: A significant majority (93%) of survey respondents expect the agricultural economy to contract modestly in 2024.
Despite these predictions, selling farmland in Illinois remains a viable option. To capitalize on your investment, conducting an auction is recommended. Auctions tend to attract competitive bids, often leading to better sale prices, particularly in a market where transaction volumes have slowed. This method can help maximize the return on your farmland investment.
For a comprehensive analysis, the full 120-page report is available on the Illinois Society of Professional Farm Managers and Rural Appraisers website.
Navigating the Selling Process:
Tips for Selling Your Farm in Illinois
Explore a set of practical tips for successfully selling your farmland by downloading our free eBooks here. Schedule a non obligatory consultation with us today and we will cover everything from when is the best time to sell, a customized marketing plan, sales methods, how we can help you find the right buyer, and answer your questions.
Farm Real Estate Experts in Illinois
Meet our team of Illinois farm real estate and auction experts who can provide you with valuable guidance and personalized assistance throughout the selling process. If you’re looking to uncover the true value of your Illinois farm or are considering selling, don’t hesitate to reach out to our experienced team. We’re here to provide you with a customized plan to meet your goals. Contact us today to get started.
Assessing Your Farm’s Worth:
Illinois Land Market Analysis Appraisal Technique
Curious what your farm could sell for? We prepare market analysis for each of our farmland sellers to help you discover and learn what your farm is worth from our market based research and expertise. Fill out our form here to request a market analysis of your Illinois farmland or call us at 402-739-8696
RECENT FARMLAND SALES IN ILLINOIS
| Date Sold | County | State | Total Acres | $/Acre | Tillable Acres | Soil Score PI | $/PI | Total Price |
|---|---|---|---|---|---|---|---|---|
| 4/23/24 | Pope | Illinois | 88.53 | $6,000.00 | 66 | 114.3 | $52.49 | $531,180.00 |
| 4/17/24 | Fayette | Illinois | 90 | $6,950.00 | 71.55 | 131.2 | $52.97 | $625,500.00 |
| 4/17/24 | Fayette | Illinois | 33.67 | $6,950.00 | 27.8 | 131.5 | $52.85 | $234,006.50 |
| 4/16/24 | De Witt | Illinois | 59.17 | $19,500.00 | 59 | 141.2 | $138.10 | $1,153,815.00 |
| 4/15/24 | McLean | Illinois | 80 | $18,000.00 | 80 | 140.6 | $128.02 | $1,440,000.00 |
| 4/11/24 | Adams | Illinois | 56.6 | $15,750.00 | 56.6 | 127.4 | $123.63 | $891,450.00 |
| 4/11/24 | Adams | Illinois | 40 | $17,500.00 | 40 | 136.4 | $128.30 | $700,000.00 |
| 4/11/24 | Adams | Illinois | 31.6 | $15,750.00 | 31.6 | 131.5 | $119.77 | $497,700.00 |
| 4/11/24 | Adams | Illinois | 55.1 | $10,000.00 | 48 | 112.9 | $88.57 | $551,000.00 |
| 4/10/24 | Rock Island | Illinois | 36.3 | $9,700.00 | 127.7 | $75.96 | $352,110.00 | |
| 4/10/24 | Rock Island | Illinois | 15.33 | $14,700.00 | 100.4 | $146.41 | $225,351.00 | |
| 4/10/24 | Fayette | Illinois | 41.29 | $13,100.00 | 41 | 105.9 | $123.70 | $540,899.00 |
| 4/10/24 | Fayette | Illinois | 41.44 | $13,500.00 | 41 | 106.6 | $126.64 | $559,440.00 |
| 4/9/24 | Fulton | Illinois | 73.57 | $8,400.00 | 58 | 134.4 | $62.50 | $617,988.00 |
| 4/9/24 | Shelby | Illinois | 51.53 | $9,025.00 | 43.25 | 100.7 | $89.62 | $465,058.25 |
| 4/2/24 | Sangamon | Illinois | 80 | $22,100.00 | 80 | 138.3 | $159.80 | $1,768,000.00 |
| 4/2/24 | Sangamon | Illinois | 23.18 | $16,300.00 | 20.04 | 128.9 | $126.45 | $377,834.00 |
| 4/2/24 | Sangamon | Illinois | 20 | $13,800.00 | 17.65 | 122.5 | $112.65 | $276,000.00 |
| 4/2/24 | Tazewell | Illinois | 40 | $17,100.00 | 37.32 | 129 | $132.56 | $684,000.00 |
| Averages | 957.31 | $13,375.00 | 124.2842105 | $107.42 |