The value of Illinois farmland rose 5% during the first six months of this year, according to a survey conducted by the Illinois Society of Professional Farm Managers and Rural Appraisers. While stronger, the pace of increase in the gains of Illinois farmland was at a slower rate than the double-digit increases posted in recent years, indicates Don McCabe, AFM, chairman of the Society’s survey project and president of Soy Capital Ag Services, Bourbonnais, Illinois
"On July 1, farmland prices averaged $11,200 (an acre) for excellent-quality farmland, $9,200 for good-quality farmland, $7,800 for average-quality farmland and $5,900 for fair-quality farmland. A year ago the 2011 mid-year survey indicated the value of the best quality land surpassed $10,000 for the first time," McCabe explains.
In a normal year, excellent-quality farmland averages more than 190 bu. of corn per acre, good-quality land 170 to 190 bu., average-quality land 150 to 170 bu. and fair quality averages below 150 bu. per acre. Survey respondents indicate 2012 corn yields will be 44% lower than expected and soybean yields will be 30% lower than expected.
McCabe notes the volume of farmland being sold during the first half of this year was down slightly compared to a year ago. "Most respondents expect the volume of sales to be at last year’s level or greater during the second half of the year," he states. Forty percent expect higher sales volume, 42% expect the same volume.
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