Illinois farmland values up 18%, cash rents continue to soar
Illinois farmland prices are up an average of 18% from a year ago.
“Over the last 18 months, certain classifications of land have gone up 40-45% in value.”
Luke Worrell with the Illinois Society of Professional Farm Managers and Rural Appraisers tells Brownfield a recent survey of their members showed 56% believe land prices have plateaued, but recent sales near his home in Jacksonville, “suggest that we are indeed still very strong, if not just a little bit higher.”
He says in the last 18 months cash rents have also jumped 25% and are projected to increase as much as $17 per acre in 2023.
“The expectation is that 2023 rents will be 5% higher. Input costs and this incredible inflationary period have likely put the clamps on quite the run up on cash rents.”
Worrell says 31% of members now have variable cash rental arrangements and that slow increase is expected to continue during this period of high volatility.
“I think is makes sense that we are seeing these variable rents. Conceptually, they are hopefully going to accurately capture what actually happens in a year, be fair on all parties, and make sure that if it is a super strong year then it is a super strong year for everybody.”
Survey participants also expect 2023 commodity prices to average $5.60/bushel for corn and $13.20/bushel for soybeans.
Survey results were announced today during the 2022 Farm Progress Show in Boone, Iowa.