News

Interest rate hikes not impacting Illinois farmland values, yet

An ag appraiser says multiple interest rate hikes have had little impact on farmland values in Illinois so far.

Kent Reid, Chief Appraiser for Farm Credit Illinois tells Brownfield since the Fed began raising rates in May, farmland values in their 60-county territory have remained stable.

“We still are not seeing any major effect on farmland. The land values have held steady throughout that.”

But with another rate hike expected in December, Reid says it’s only a matter of time.  

“In the near future I would look for stability still, but as these rates increase there is no doubt at some point it is going to have to have some effect on land values.”

He says commodity prices are another factor influencing land values and with continued volatility he advises farmers to be cautious when making decisions on land purchases.

Listen to the November 2022 Insider Look With Farm Credit Illinois podcast for more information on interest rate increases and impacts to farmland values.