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

Illinois farmland values and recent sales in May 2024

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

How does soil productivity rating effect price of farmland?

One of the most significant factors influencing Illinois farmland values is the soil productivity rating, commonly measured by the Productivity Index (PI). Soils with high PI ratings, typically 133 or higher, are highly fertile, well-drained, and capable of producing high crop yields. This increased productivity translates directly into higher profitability for farmers, making such land more valuable and desirable. Consequently, high-PI farmland often attracts multiple buyers, driving up prices through competitive bidding. Furthermore, lenders tend to offer more favorable loan terms for land with higher productivity ratings, considering it a lower-risk investment. The long-term sustainability and resilience of high-PI soils also enhance their value as they maintain productivity with proper management. In Illinois, regions like McLean and Champaign counties, known for their high-quality soils, consistently see higher land prices, reflecting the premium placed on productive land. Soil productivity ratings can be categorized into ranges: Excellent (133-147), Good (117-132), Average (100-116), and Fair (less than 100). Thus, understanding soil productivity ratings is crucial for buyers, investors, and sellers to make informed decisions and achieve the best possible outcomes in the farmland market.

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 May 2024, a total of 1,576.80 acres of farmland was sold in Illinois by the auction sales method which was more than what we saw in April.

• The current average per acre price for land in Illinois according to these May sales is $10,928 per acre for farmland which is down from April’s results of  $13,375 /acre for farmland.

• The highest selling dollars per acre farm in Illinois in the month of May 2024 sold on May 13 in Adams County, Illinois sold for $19,200 per acre for 64 acres, with a soil productivity index rating of 134.8 which calculates to be $142.43/PI.

  • The highest selling farm in May sold for a total of $3,421,083 in Fayette County, IL on May 21st for 242.63 acres. This comes out to $14,100/acre on a 98% tillable farm. 

• 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.

In May 2024, the Illinois farmland market has shown signs of stabilization following a peak in values last year. The market peaked at $23,000 per acre in spring 2023 but has seen a slight pullback since then. As of early 2024, top-quality cropland values have settled around $21,300 per acre, reflecting a 38% increase over two and a half years but off the previous high

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:

  1. 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%.
  2. 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.
  3. Agricultural Economy:
    • Contraction Expectations: A significant majority (93%) of survey respondents expect the agricultural economy to contract modestly in 2024.

The farmland market remains influenced by sustained demand for quality land, limited supply, lower commodity prices, and high interest rates. Despite the recent stabilization, the overall number of land sales in Illinois decreased by about 35% in 2023 compared to 2022. The current trend suggests that land values will continue to stabilize without significant drops or dramatic increases in the near future​

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

County Date Sold Total Acres $/Acre Tillable Acres % Tillable Soil Score $/PI Total Price
Macon 05/29/2024 80 15,000.00 77.67 97.09% 140.5 $106.76 1,200,000.00
Macon 05/29/2024 79 14,000.00 74.78 94.66% 140.2 $99.86 1,106,000.00
Lee 05/23/2024 67.65 13,167.78 63.05 93.20% 126.1 $104.42 890,800.00
Sangamon 05/23/2024 48 13,600.00 37.88 78.92% 133.7 $101.72 652,800.00
Pike 05/23/2024 47.68 18,100.00 47 98.57% 135.9 $133.19 863,008.00
Pike 05/23/2024 81.52 19,100.00 81.4 99.85% 138 $138.41 1,557,032.00
Lee 05/23/2024 68 13,100.00 68 100.00% 126.7 $103.39 890,800.00
Fayette 05/21/2024 81.52 13,800.00 78.61 96.43% 111.7 $123.55 1,104,000.00
Fayette 05/21/2024 242.63 14,100.00 238.79 98.42% 111.7 $126.23 3,421,083.00
Pope 05/20/2024 104 5,400.00 90 86.54% 114.8 $47.04 561,600.00
Adams 05/13/2024 64 19,200.00 64 100.00% 134.8 $142.43 1,228,800.00
Perry 05/09/2024 72.64 5,644.27 42 57.82% 114.7 $49.21 409,999.77
Iroquois 05/09/2024 19 6,315.79 17 89.47% 101 $62.53 120,000.01
Iroquois 05/09/2024 29.55 10,731.71 26 87.99% 90.7 $118.32 317,122.03
Iroquois 05/09/2024 15 8,666.67 15 100.00% 96.1 $90.18 130,000.05
McLean 05/09/2024 124.66 18,100.00 110 88.24% 135.8 $133.28 2,256,346.00
Montgomery 05/08/2024 20 9,050.00 18.5 92.50% 110.9 $81.61 181,000.00
Montgomery 05/08/2024 74 9,050.00 64.26 86.84% 108.5 $83.41 669,700.00
Montgomery 05/08/2024 77 9,000.00 65.5 85.06% 111.3 $80.86 693,000.00
Montgomery 05/08/2024 80 10,000.00 72 90.00% 109.6 $91.24 800,000.00
Montgomery 05/08/2024 61.55 11,150.00 59.48 96.64% 108.7 $102.58 686,282.50
Montgomery 05/08/2024 14.4 10,800.00 13.82 95.97% 112 $96.43 155,520.00
Montgomery 05/08/2024 25 11,150.00 25 100.00% 111.8 $99.73 278,750.00
Averages/Totals 1,576.80 10,928.82 1,381.74 91.92% 118.4869565 $100.71 25,013,963.36

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.