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Land values end sales season with a bang

The owner of a farm real estate business considers September through March to be the prime sales season for farmland, and he says this year it’s ending with a bang.

Luke Worrell with Worrell Land Services in west central Illinois tells Brownfield in 2021, class A land values in Illinois jumped 26% year over year- with a similar trend seen from coast to coast.

“Quite honestly, I think we have seen even further strength so far here in 2022. Most of the highest sales have all taken place within the last two weeks.”

He says historically, land sales tamper off during the growing season, so Worrell expects the market to take a breath once planting starts, but there are factors to be watching come late summer.

“Where we are at from a commodity price standpoint, where we are at with input costs, where we are at in the geopolitical landscape. I think wherever we jump back into the mix here in September will say a lot about how land values will end in 2022.”

Worrell says renewed strength in commodity markets, historically low interest rates and the overall supply and demand picture following the height of pandemic have been the main drivers of farmland values.

Interview with Luke Worrell

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