Farm real estate values up 4.5% in Illinois this year
Illinois farm real estate values continue an upward climb.
The USDA reports the average farm real estate value for Illinois in 2023 was $9300 per acre, up 4.5% from 2022 and the third increase since 2015.
Brad Zwilling with the Illinois Farm Business Farm Management Association tells Brownfield positive farm income has contributed to the uptick.
“Interest rates in general have been very low and that’s making investors and farmers say ‘What can I put my money into that I’ve had from this good farm income and reinvest it into?’ and some farmland has been a good attractive investment.”
He says the increase was milder than the 12.7% bump from 2021 to 2022 and that is likely due to recent interest rate hikes.
“If I’m a farmer that’s getting close to retirement, I might not be so apt to buy farm ground, because now I can put it in a bank, in a CD and make 4 or 5% where I could only make .05% before that.”
Zwilling says he still considers farmland a good investment and recommends farmers utilize resources to see if a purchase is right for their operation.
“Farmdoc.illinois.edu has some great resources to determine if you can justify buying a piece of land and looking at ag land purchases. Illinois FBFM can help you with those records, getting those balance sheets and doing some cash flows.”
Zwilling says farm real estate values include both crop land and buildings on the farm.
*Graph provided by farmdoc Daily
Audio: Interview with Brad Zwilling