Unlocking the Value of Illinois Farmland: A Comprehensive Guide to Current Land Prices and Expert Insights - March 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
Illinois’s agricultural landscape is influenced by a multitude of factors. In this blog, we will explore how commodity prices, interest rates, government policies, and regional conditions impact the current market values.
In the agricultural world of 2024, several challenges intersect, creating a complex environment for farmers. The aftermath of the Russia-Ukraine conflict has caused input costs like fertilizers and pesticides to soar, impacting farmers’ bottom lines. Though there’s been some relief in costs this year, the effects of the conflict still linger, highlighting the vulnerability of agriculture to global events.
Additionally, the Israel-Hamas conflict adds another layer of uncertainty, especially regarding fuel prices and supply chain reliability. While concerns about fuel costs are valid, the more immediate issue is labor shortages, which hinder smooth operations within supply chains.
Despite these challenges, the agricultural community demonstrates resilience. Unlike the debt-heavy conditions of the 1980s, today’s land market is more stable, with less reliance on borrowing. However, inflation and demographic changes pose ongoing challenges, indicating a need for innovative solutions to sustain the industry’s future.
The agricultural landscape of 2024 is marked by complexity, with various factors influencing its trajectory. Despite obstacles, there are opportunities for growth and adaptation as the industry navigates through uncertain times.
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.
Average Price of Farmland in Illinois
• In the month of March, a total of 1,208.96 acres were sold in Illinois by the auction sales method.
• The current average per acre price for land in Illinois according to these March sales is $12,409 /acre.
• The highest selling farm in Illinois in the month of March 2024 sold on March 5th in Woodford County for $1,552,000 for 77.6 acres, with a PI of 143.1.
• The farm with the highest selling per acre price was the same farm at $20,000 per acre in Woodford County, Illinois.
• See full results from all farmland sold this month at the end of the page.
Despite the notable surge in land values observed a year ago, which was driven by strong commodity markets, the momentum has since tapered off. However, the present trend suggests that these values are holding steady. Notably, in the face of high interest rates, there has been an increase in lending, as reported by the Federal Reserve Bank of Kansas City.
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 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 Farmland Values
Here you will gain insights into the future of Illinois’s farmland market with our expert forecasts. Understand what to expect in the coming months and years. Here’s what we are predicting:
The market outlook for 2024 suggests stability, with land values holding steady despite high production costs and low commodity prices. While farm incomes may dip slightly, overall profit margins are expected to remain similar to 2023.
We anticipate minimal changes in farmland prices throughout the year unless significant catalysts arise. Cash rent levels are likely to stay unchanged, possibly decreasing slightly. Stable interest rates contribute to market stability, with little fluctuation expected until external factors intervene.
Landowners planning to sell in 2024 can expect stable land values and a steady pool of buyers, potentially fetching higher prices due to limited inventory in many areas.
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.
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
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
| County | Total Acres | $/Acre | Tillable Acres | $/Tillable Acre | PI Soil Score | Total Price | Date Sold |
|---|---|---|---|---|---|---|---|
| Mason | 118.21 | $12,600 | 115.91 | $12,850 | 116.8 | $1,489,446 | 3/11/24 |
| Mason | 62 | $4,900 | 19.5 | $15,579 | 80.1 | $303,800 | 3/11/24 |
| Mason | 138 | $10,900 | 119.03 | $12,637 | 104.4 | $1,504,200 | 3/11/24 |
| Mason | 120 | $7,400 | 104.48 | $8,499 | 111 | $888,000 | 3/11/24 |
| Mason | 40 | $11,500 | 39.4 | $11,675 | 105.2 | $460,000 | 3/11/24 |
| Mason | 118 | $11,500 | 115.54 | $11,745 | 105.9 | $1,357,000 | 3/11/24 |
| Menard | 44.53 | $13,100 | 38.35 | $15,211 | 114.5 | $583,343 | 3/11/24 |
| Menard | 45.76 | $9,300 | 12.88 | $33,041 | 93.6 | $425,568 | 3/11/24 |
| Menard | 38.8 | $11,800 | 36.3 | $12,613 | 117.7 | $457,840 | 3/11/24 |
| Menard | 41.2 | $14,750 | 38.56 | $15,760 | 133.7 | $607,700 | 3/11/24 |
| Hancock | 40 | $7,700 | - | - | 102.5 | $308,000 | 3/6/24 |
| Edgar | 74 | $13,500 | 69.15 | $14,447 | 126.2 | $999,000 | 3/6/24 |
| Woodford | 77.6 | $20,000 | 77.6 | $20,000 | 143.1 | $1,552,000 | 3/5/24 |
| Woodford | 77.6 | $20,000 | 77.6 | $20,000 | 143.1 | $1,552,000 | 3/5/24 |
| McLean | 80 | $17,000 | 79.44 | $17,120 | 135 | $1,360,000 | 3/5/24 |
| Iroquois | 93.26 | $12,600 | 91.26 | $12,876 | 127.2 | $1,175,076 | 3/4/24 |
| STATEWIDE AVERAGES | 75.56 | $12,409 | 69 | $15,604 | 116.25 | $938,936 | |
| STATEWIDE TOTALS | 1208.96 | 1035 | $15,022,973 |