Unlocking the Value of Illinois Farmland: A Comprehensive Guide to Current Land Prices and Expert Insights - August 2024 Report

Illinois land prices June 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

The state’s August RMI sank to 44.5 from July’s 44.8. The farmland price index dropped to 45.9 from 52.1 in July. The state’s new hiring index fell to 45.9 from 50.0 in July. According to trade data from the International Trade Association, exports of agriculture goods and livestock for 2024 year-to-date were down by $176.0 million, or 7.0% from the same period in 2023. Jim Eckert CEO of Anchor State Bank in Anchor reported that “In our part of Central Illinois the crops are looking good.”

(Creighton University)​.

For more details, visit Creighton University’s Mainstreet Economy.

Rachel Tiffany

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 August 2024, a total of 2,820.36 acres of tillable farms was sold in Illinois by the auction sales method.

• The current average per acre price for land in Illinois according to these August sales is $12,024.03 /acre for farmland in Illinois counties.

• The highest selling dollars per acre farm in Illinois in the month of July sold in Sangamon County, IL sold for $18,000 per acre for 40 acres, with a soil productivity index rating of 140.5.

• 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.

Why Now is a Good Time to Sell Farmland in Illinois Despite the Downturn in the Rural Mainstreet Index

If you’re a farmland owner in Illinois, recent reports might seem discouraging. The latest Rural Mainstreet Index (RMI) for August 2024 shows the overall region, including Illinois, slipping deeper into contraction. For the 12th consecutive month, the index—measuring economic activity in rural America—remained below growth neutral at 40.9, with Illinois specifically seeing a drop from 44.8 in July to 44.5 in August. Declining agricultural exports, weak commodity prices, and a sluggish farm equipment market are driving these numbers down.

But despite these challenges, there are compelling reasons why now might actually be the right time to sell your farmland.

1. Favorable Long-Term Trends in Land Values

While Illinois’ farmland price index has fallen, it’s important to keep things in perspective. The August 2024 reading of 45.9, though below neutral, is only slightly lower than 52.1 in July, and it reflects fluctuations typical of the agricultural cycle. Historically, farmland has shown resilience, often appreciating over the long term even when commodity prices dip. In fact, compared to other assets, farmland has demonstrated strong returns, especially when considering its dual-use potential for both farming and development.

If you’ve owned farmland for several years, chances are it has appreciated significantly. Selling now, when land values are still relatively strong despite short-term economic fluctuations, could provide an opportunity to lock in gains before any further potential downturns.

2. Demand for Development

Illinois, particularly Central Illinois, continues to experience demand for farmland from developers. While agricultural commodity prices may be weak, rural areas around major cities like Chicago and Springfield are seeing demand for country living properties, solar energy developments, and even industrial projects. Your farmland might attract interest from buyers looking to invest in non-agricultural uses.

With cities and towns expanding, developers are seeking open land for projects, especially along transportation corridors and near growing suburbs. Selling your farmland for development purposes could offer a premium compared to agricultural use alone.

3. Favorable Crop Outlook in Illinois

Even though the broader agricultural economy is struggling, there’s some good news: crop conditions in Central Illinois are looking favorable. According to Jim Eckert, CEO of Anchor State Bank, crop yields are on track to perform well this season. This makes your land more attractive to potential buyers who might be looking for operational farmland that can provide immediate returns.

In regions like Illinois, where the soil quality is high and crop outlooks are promising, potential buyers might see the current downturn as an opportunity to acquire productive land before agricultural prices inevitably rebound.

4. Rising Interest Rates: Time to Act

One of the key factors impacting farmland buyers today is rising interest rates. While this might seem like a deterrent, it can also be an incentive for certain buyers to act now. As borrowing costs increase, some investors may be looking to secure deals before interest rates rise further. For sellers, this means you could attract serious buyers who are motivated to close a deal before financing becomes more expensive.

By positioning your property as a solid investment during this period of economic uncertainty, you may find buyers eager to lock in their farmland acquisition now rather than wait for the market to change.

5. Diversification for Investors

For many farmland owners, the property has been a reliable source of income, but diversification can provide financial stability, especially during economic uncertainty. If you’ve been considering selling your farmland to diversify your investments, now is a strategic time. You could use the proceeds to invest in other income-generating assets, such as real estate, stocks, or bonds, while prices remain stable in these sectors.

Given the downturn in the Rural Mainstreet Index, other markets may offer more immediate returns or growth potential. By selling now, you can capitalize on the relative stability of farmland prices and reallocate your funds to diversify your portfolio.

Conclusion

While the Rural Mainstreet Index paints a challenging picture of the agricultural economy, selling your Illinois farmland now can still be a wise financial decision. Farmland values remain resilient, and development demand offers opportunities beyond traditional agricultural use. With favorable crop conditions, rising interest rates, and the potential to diversify, now may be the perfect time to sell your farmland, ensuring you benefit before further economic shifts. Timing the market is always difficult, but taking advantage of today’s opportunities could yield long-term financial benefits.

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 Total Price Total Acres $/Acre Tillable Acres $/Tillable Acre Soil Score Primary Crop (2023)
08/30/2024 Douglas $1196329.50 73.17 $16350.00 - - 140.8 PI Soybeans
08/29/2024 Madison $193430.00 42.05 $4600.00 - - 120 PI Woody Wetlands
08/29/2024 Fayette $416000.00 80.00 $5200.00 - - 117.2 PI Deciduous Forest
08/29/2024 Fayette $488000.00 40.00 $12200.00 38.00 $12842.11 115.8 PI Corn
08/29/2024 Fayette $261576.00 20.76 $12600.00 18.00 $14532.00 109.3 PI Corn
08/28/2024 Cumberland $2371800.00 177.00 $13400.00 175.82 $13489.93 101.3 PI Soybeans
08/28/2024 Stephenson $1296230.00 87.88 $14750.00 83.69 $15488.47 137.5 PI Corn
08/28/2024 Stephenson $1152000.00 80.00 $14400.00 77.90 $14788.19 133.4 PI Corn
08/28/2024 Stephenson $2639398.00 196.97 $13400.00 196.97 $13400.00 137 PI Corn
08/28/2024 Washington $423190.00 40.40 $10475.00 40.40 $10475.00 106.6 PI Corn
08/28/2024 Madison $738975.00 83.50 $8850.00 83.00 $8903.31 109.4 PI Soybeans
08/28/2024 Madison $2450370.00 401.70 $6100.00 360.00 $6806.58 111.9 PI Soybeans
08/28/2024 Macon $570720.00 35.67 $16000.00 35.22 $16204.43 140.1 PI Corn
08/28/2024 Macon $720000.00 40.00 $18000.00 40.00 $18000.00 140.5 PI Soybeans
08/27/2024 LaSalle $1795110.00 135.48 $13250.00 129.84 $13825.55 130.6 PI Corn
08/27/2024 Kankakee $1287399.00 138.43 $9300.00 123.95 $10386.44 136.2 PI Soybeans
08/27/2024 Will $516000.00 40.00 $12900.00 40.00 $12900.00 135.8 PI Corn
08/23/2024 Macon $1328000.00 80.00 $16600.00 76.93 $17262.45 134.3 PI Soybeans
08/23/2024 Macon $1872000.00 120.00 $15600.00 111.50 $16789.24 142 PI Corn
08/23/2024 Macon $1136000.00 80.00 $14200.00 78.59 $14454.77 141 PI Soybeans
08/23/2024 Macon $1053626.00 88.54 $11900.00 79.59 $13238.17 142.5 PI Soybeans
08/22/2024 DeKalb $1628400.00 138.00 $11800.00 136.40 $11938.42 138.8 PI Corn
08/22/2024 Hancock $878684.00 82.12 $10700.00 71.00 $12375.83 129.7 PI Corn
08/22/2024 Peoria $1089060.00 77.79 $14000.00 74.62 $14594.75 130.7 PI Corn
08/19/2024 Knox $1425900.00 97.00 $14700.00 96.00 $14853.12 141.2 PI Corn
08/16/2024 Crawford $66500.00 14.40 $4618.06 14.00 $4750.00 121.9 PI Soybeans
08/15/2024 Fayette $475000.00 70.00 $6785.71 62.39 $7613.40 94.3 PI Soybeans
08/15/2024 Fayette $116000.00 20.00 $5800.00 15.67 $7402.68 88.4 PI Grassland/Pasture
08/14/2024 Champaign $1280000.00 80.00 $16000.00 78.40 $16326.53 141.2 PI Corn
08/01/2024 Peoria $2550000.00 160.00 $16242.04 157.00 $16242.04 140.5 PI Corn
Total $33415697.50 $12024.03 $12958.64

Call us about selling your Illinois land at 402-739-8696  We can help you safely transition your land ownership using a private sale, public auction or even a private land auction.