The value of Illinois farmland slipped slightly during the first six months of 2009, according to the annual mid-year survey of Illinois land values conducted by the Illinois Society of Professional Farm Managers and Rural Appraisers. The survey indicated the value of excellent quality farmland (averaging 170 bu. per acre and more) dipped $171 per acre, or 2.3%. Society members said the value of good quality farmland (averaging 150 to 170 bu. per acre) slid $190 an acre. The value of average quality farmland (averaging 130 to 150 bu. per acre) declined $276 an acre, or 5.3%. The value of fair quality farmland (averaging less than 130 bu. per acre) fell by $225 an acre, or 5.4%.
Society members said excellent quality farmland averaged $7,200 an acre as of July 1, good quality farmland averaged $6,300 an acre, average quality farmland averaged $4,900 an acre and fair quality farmland averaged $4,000 an acre.
Eighty-eight percent of respondents said the volume of sales declined during the first half of 2009 compared to the first half of 2008. Fifty-six percent said they expect the sales volume to be less during the last half of 2009 versus the last half of 2008.
Half of survey respondents expect farmland values to decline over the next twelve months and 32% expect prices will remain stable.
In addition, Society member expect cash rents to decline slightly in 2010 by $10 to $15 an acre compared to 2009 levels.
If interested in our complete report on the survey, just drop me an email at [email protected] or call me at 800-772-0023.