What's happening in your local market?

A summary of land sales in the past 12 months (sorted by county):

Farmland Value Benchmark Study

Each year the Farm Credit Illinois (FCI) appraisal team evaluates the same 20 benchmark farms throughout its 60-county territory based on the land’s productive index (PI) rating, as calculated by the University of Illinois’ Bulletin 811. Based on individual PI ratings, farms are divided into four categories: 1A, 2B, 3C Central, and 3C South.

For the fourth consecutive year, land values in the central and southern 60 counties of Illinois increased, according to FCI’s annual benchmark study.

Overall, farmland values increased an average of 27.88% with 19 of the 20 benchmark farms increasing and one remaining unchanged. Results across all land classes showed considerable variation, reinforcing that agricultural real estate is a location-specific asset. When considering the individual benchmark values, the year-over-year percentage changes ranged from no change to a 55.74% increase. The table below illustrates the average changes in the four general land classifications.

Read more analysis from Kent Reid, FCI chief appraiser here.

“2022 saw an active farmland market influenced by the limited supply of and strong demand for Illinois farmland, profitable commodity prices, and increased working capital on many farms,” says Kent Reid, FCI chief appraiser. “The substantial overall increase set a new peak in the market.”

The economic health of farmers and farm owners is mostly stable, but there are still pressures on farmers’ financial positions. Higher input prices including anhydrous, rising cash rents, and increasing machinery costs will be a challenge for the upcoming year. Rising interest rates have not yet affected farmland values. If rates follow projected increases, however, they could bring down 2023 values. Keep up with local markets throughout the year with the Farmland Trends Tracker – a free email report delivered twice a year from FCI’s state certified appraisal team.