MAHOMET, Ill. — Farmland values throughout central and southern Illinois increased 8.54% on average from last year, according to the 2021 annual study of 20 benchmark farms by the Farm Credit Illinois appraisal department. The study has been ongoing since 1974.
This is the third consecutive year of an increase in FCI’s 60-county territory. In 2020, the study showed values up 2.07%. The annual study’s historical trends show the market peaked in 2014 and then experienced a steady decline in values from 2015-2018.
The 2021 study showed 18 of 20 benchmark farms increased in value and two were unchanged. Results varied considerably across land classes, reinforcing that agricultural real estate is a location-specific asset. When considering the farms individually, the year-over-year change ranged from no change to a 20.51% increase.
“The significant increase in farmland market values is attributed to a bump in commodity prices and a strong demand for Illinois farmland,” says Kent Reid, Farm Credit Illinois chief appraiser. “These primary factors combined with pandemic assistance programs and low interest rates helped fuel the rise in values.”
Forecasted higher input prices and rising cash rents will present a challenge for farmers in the upcoming growing season. However, the 8.54% increase indicates a strong market with values nearing the all-time highs of 2014.
— Farm Credit Illinois
For more articles out of Illinois, click here.