Scorching Hot Illinois Farmland Auctions Continue

March 15, 2016 10:10 AM
Scorching Hot Illinois Farmland Auctions Continue

In February 2016, the Federal Reserve Bank of St. Louis reported that a seven-state geography that includes Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri and Tennessee saw farmland values slip 2.5% from a year earlier.

Did Illinois not get the memo?

The Land of Lincoln has been the land of scorching hot farmland auctions so far in 2016. Recent highlights include two tracts of land in Sangamon County that went for more than $13,000 per acre, including a 107-acre tract for $13,879 per acre and an 80-acre tract for $13,313 per acre.

“We had both farmers and investors competing vigorously for this land, and ultimately, the nine tracts of land were divided among seven bidders,” according to Joe Bubon, president of Murry Wise Associates. “Interest was widespread, with a number of large investors from other areas bidding.”

Earlier in March, Farmland Partners Inc. announced it had acquired 22,100 acres near Paris, Ill., for a total of $197 million (a little more than $8,900 per acre).

According to University of Illinois research, the average value of an acre of Illinois farmland is $7,500. Researcher Bradley Zwilling says that represents a slight dip (-0.3%) from 2014, a rare decline for the state.

“The 2015 decrease is the first since 2009 and only the second decrease since 1987,” he says.

R.D. Schrader, president of Schrader Real Estate and Auction Company, says local specifics can easily ramp up competitive bidding quickly and override state or regional trends.

“We’re seeing some results that you wouldn’t expect based on some of the commentary and forecasts I’ve been seeing. Nobody can predict what’s ahead, but the reality we’re seeing on the ground is that farmers and investors alike see farmland as a good long term investment.”

For AgWeb’s Farmland Value Guide, which shows average cropland and pasture values for each of the lower 48 states, visit


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Spell Check

Bret Racer
Hennessey, OK
3/20/2016 09:23 PM

  Land prices holding firm here in ok. It's a good thing in case I have to sell the land to pay off the Bank. Hopefully won't get there

Imperial, NE
3/15/2016 06:50 PM

  It's time for some positive news in Agriculture. After several years of negative news , we were all starting to think we were doomed. Now with current news and trends especially in Land and Cattle , we have hope. If Wall Street and the media don't "help" us out we will be ok !

bad axe, MI
3/15/2016 11:14 PM

  S.R.W The Federal Reserve quarterly report . I study this as much as i can ,i get alot of info from congressional subcommitte reports. Dr Carmen Riechart, she is the world expert on Credit market debt to G.D.P ratio's, said the U.S has a 400% debt to gross ratio it's credit market debt is over 64 trillion. Debt Clock dose a real good job at compiling all the reports from the federal reserve, world bank, international monetary fund, and all the rating agencies. In 1980 we were at 4.7 trillion in total credit market debt, now were at 64 trillion. Between 2000 and 2006 the fed was putting 2 to 3 trillion in (HOT MONEY) into the credit market to sustain the housing market. There's 700 trillion in derivatives (insurance hedges) floating around the world insuring all this debt. The sad part about this is the farmer caught up in this as a pawn in a bigger game he dosen't understand


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