In a recently released study by the Farm Credit Illinois appraisal team, farmland values in central and southern Illinois have an average value increase of 8.1% from the previous year. This study, conducted annually since 1974, offers insights into the dynamics of the agricultural real estate market in the region.
The trend of farmland values has seen its share of fluctuations over the years. Following a significant surge from 2003 to 2014, a decline started in 2015 and continued slightly until 2018. However, from that point onwards, values have been on the rise, culminating in new peak values in 2023.
Among the 20 benchmark farms studied, 15 experienced an increase in value, with only one showing a slight decline. Year-over-year changes ranged from -5.3% to +31.3% across different benchmarks.
Kent Reid, Chief Appraiser at Farm Credit Illinois, highlighted the robustness of the farmland market in 2023, attributing it to profitable commodity prices, consistent demand, limited supply of farmland, and stabilized farm balance sheets.
Despite some hope for economic stability among farmers, challenges like rising interest rates, cash rents, and commodity price fluctuations are anticipated in the coming year. However, ag leaders say the 8.1% increase signals a resilient market across FCI's 60-county territory.