Illinois Farmland Prices Continue to Rise

Aug 27, 2012

U.S. Department of Agriculture Estimates Illinois Farmland Prices

Farmland prices continue to rise across the United States and the U.S Department of Agriculture estimates that the average Illinois farmland price for 2012 is $6,800 per acre. Compared to 2011 prices - it’s 17% higher with the average price being $5,800. The Chicago Federal Reserve Bank estimates that farmland prices will increase an additional 15% this year for northern and central Illinois farmland.

In correlation with the farmland prices is farmland cash rents are on the rise. Returns to farmland increases in this case is leading to higher farmland prices, with the average 2012 cash rent at $212 per acre. The cash rents return is 16% higher compared to 2011 prices with the average rent at $183. Since 2005 cash rents have increased by 64%.

The USDA predicts that farmland prices will experience a steady increase. Historically, the last time farmland prices decreased was in the 1980s. During that period, interest rates were on the rise. Until interest rates start to jump there may be little to impact a potential for farmland price declines.

Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.