The value of Illinois farmland rose only slightly in the first half of 2010, according to a mid-year "snap-shot" survey conducted by the Illinois Society of Professional Farm Managers and Rural Appraisers (ISPFMRA). The ISPFMRA conducts a survey half way through the year to obtain general directions on farmland prices and cash rents. The information supplements the Society's in-depth survey which is conducted annually at year end.
Key Survey Points
1. Respondents indicated higher quality land increased slightly during the first half of 2010. Excellent quality farmland rose $131 an acre, or 1.7%. Fair quality farmland was listed as stable. (Excellent quality farmland averages more than 190 bu. of corn per acre, good quality farmland averages between 170 and 190 bu. per acre, average quality farmland averages between 150 and 170 bu. per acre and fair quality farmland averages below 150 bu. per acre.).
2. On July 1, 2010, farmland prices averaged $7,665 per acre for excellent quality farmland, $6,639 for good quality land, $5,724 for average quality farmland and $4,646 for fair quality farmland.
3. The volume of sales was less during the first half of 2010 compared to a year earlier. Sixty-five percent of respondents indicated the volume of sales was less than during the first half of 2009.
4. Most respondents expect the volume of sales to be the same or less during the last half of 2010 as compared to the last half of 2009.
5. Most respondents expect farmland prices to increase during the next 12 months: 16% expect values to increase more than 5% and 64% expect increases between 0 and 5%. Fourteen percent expect stable prices while 17% expect prices to decline.
Respondents expect 2011 rents to average slightly higher than 2010 levels.
On excellent quality farmland, respondents indicated they expect 2011 rents to rise about $7 an acre, a 2.5% increase, to an average of $279 an acre. That compares to an average of $272 an acre for 2010.
On average quality farmland, respondents indicated the average cash rent in 2010 was $230 an acre and expect 2011 rents to average $237 an acre, also a $7 increase.
On average quality farmland, respondents said the average cash rent in 2010 was $193 an acre and expect 2011 rents to average $199 an acre, a $6 increase.
The survey also looked into leasing arrangements with 65% of respondents expecting increase use of a variable cash rent for 2011. You can find survey results concerning variable cash rent arrangements and bonus cash rent arrangements by clicking here.
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