Illinois farmland values continue to retreat, according to a survey by the Illinois Society of Professional Farm Managers and Rural Appraisers (ISPFMRA). The survey found farmland values declined 3.3% to 7%, depending on the land’s quality, in the first half of 2016. Survey respondents cite sub-$4.00 corn prices as the primary driver behind the decrease in farmland values. With low corn prices expected to continue well into 2017, fully 90% of respondents look for farmland prices to slide through the second half of 2016.
Excellent-quality farmland eased 3.3%, according to the survey, while good-quality ground declined 4.5%, average-quality land decreased 5.6% and fair-quality ground fell 7%. (Note: Excellent-quality farmland averages more than 190-bu. per acre; good averages between 170 and 190 bu. per acre; average averages between 150 and 170 bu.; and, fair-quality farmland average less than 160 bu. per acre.)
Respondents peg average farmland prices as of July 1 at $11,100 an acre for excellent-quality land, $9,400 an acre for good-quality farmland, $7,600 an acre for average-quality ground and $5,800 an acre for fair-quality land.
The survey also indicates the volume of farmland coming to the marketplace has slowed. The survey found 66% of respondents saying less farmland was sold in the first half of 2016 compared to the last half of 2015.