Excellent-graded farmland in Illinois shows nice jump of 26 percent in year-over-year values in 2021.
By Andrew Joseph, Farms.com; Image via Ryan Spencer on Unsplash.com
According to the Illinois Society of Professional Farm Managers and Rural Appraisers (ISPFMRA), farmland values in Illinois were stupendous in 2021, led by a 26 percent rise in year-over-year values from 2020 for land deemed Excellent.
Per the ISPFMRA’s statewide survey using data collected by over 80 professionals, the Excellent category of farmland sales averaged US$14,700 (~CDN$18,370) per acre in 2021 in Illinois, compared to just US$10,870 (~CDN$13,585) in 2020.
And the rise in farmland was up right across the board for Good, Average, Fair and Recreation lands.
Within the Good farmland sector, 2021 saw values rise to US$10,710 (~CDN$13,385) per acre from 2020’s value of US$8,446 (~CDN$10,555).
Average farmland saw gains in 2021 from US$7,445 (~CDN$9,302) per acre, up from 2020’s US$6,409 (~CDN$8,008).
Fair farmland only saw a modest per acre increase—but an increase nonetheless—to US$5,500 (~CDN$6,872), up from US$5,353 (~CDN$6,689) in 2020.
Recreation land rose in value from US$4,615 (~CDN$5,766) per acre in 2021 from US$3,689 (~CDN$4,609) in 2020.
One of the driving factors for the rise in land values is that in 2021, Illinois farmers were able to sell their grain at nearly 50 percent more than what they realized in 2020—of course, interest rates remained low.
Also helping fuel the 26 percent rise in values over 2020, was that in 2021 more Excellent farmland properties were sold.
The ISPFMRA also noted that land values around the State differed depending upon the region where the land was sold.
Region 8 saw the highest values for Excellent rated farmland—the counties of Madison, Bond, St. Clair, Clinton, Washington, Monroe, and Randolph. Excellent farmland saw average sales per acre of US$15,714 (~CDN$19,624); Good at US$11,473 (~CDN$14,328); Average at US$10,284 (~CDN$12,843); Fair a respectable US$7,679 (~CDN$9,591), and; Recreational a below average US$3,530 (~CDN$4,409) per acre.