DECATUR, Ill. — Owners of farmland across Illinois saw a dramatic 20% increase in land values in the first half of 2021, only the fourth time there has been this size of positive change in land values since 1970, according to a survey done by the Illinois Society of Professional Farm Managers and Rural Appraisers. The results of the survey were released Sept. 1 at the Farm Progress Show.
According to Gary Schnitkey, economist with the University of Illinois, and Luke Worrell, Worrell Land Services, Jacksonville, the price increases occurred across the state and affected land from all productivity levels.
“Only four times in the last 50 years has there been an increase of this magnitude,” Worrell said.
The survey was conducted in mid-August among ISPFMRA members and others associated with farmland sales and valuations.
The upward trend in land values is expected to continue, with 78% predicting increases, although at a more moderate rate over the next five years. Cash rents in 2022 are also expected to increase by as much as 11% over rates paid this year. According to Schnitkey and Worrell, Illinois Society members generally have a base cash rent, with an increase possible if revenue is above a pre-set threshold. The use of this type of arrangement is expected to grow. The average supplemental rent on a share rent lease is $29 per acre.
Per-acre rental rates for excellent productivity is expected to move upward from $315 to $350. Values on good productivity property will move from $279 to $299; average productivity land, from $226 to $249; and fair land, from $188 to $210. Fifty-one percent of survey respondents indicate farmland values will be 1 to 10% higher in five years.