U.S. Department of Agriculture Estimates Illinois Farmland Prices
By Amanda Brodhagen, Farms.com
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.
