A mid-year update on Illinois land values indicates the average value of an acre of Illlinois farmland rose by 9% during the first six months of 2008. The survey was sponsored by the Illinois Society of Professional Farm Managers and Rural Appraisers and was conducted by the University of Illinois. It found excellent quality farmland commaded an average price of $7,350 an acre as of July 1, up from $6,926 an acre on January 1. The July price fo good quality farmland averaged $6,630 an acre, according to the survey, up from $6,013 an acre. Average quality farmland brought $5,590 an acre on July 1 versus $4,975 an acre. Fair quality farmland averaged $4,230 an acre, compared to $4,047 an acre on January 1.
The uptrend is expected to continue, the survey states. It found 82% of those responding to the survey expected farmland prices would increase into next year.
Cash rents will rise by an average of $43 an acre for 2009, compared to 2008, the survey also found. It pegged the average cash rent at $281 an acre.
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