BLOOMINGTON, Illinois – Illinois farmland values continue to rise.
“We haven’t seen anything slow down yet,” Nicole Schaefer of Compeer Financial in Ottawa, Ill., said on March 23.
Even though the 2022 Illinois Farmland Values and Lease Trends report, recording 2021 prices, was just released on March 17, the numbers are no longer current, she said. Prices are significantly higher now.
Illinois’ prime farmland increased 26% in 2021 compared to 2020.
So far this year, Schaefer, a member of the team contributing to the report, said it looks like investors are becoming even more active in buying farmland. The two biggest buyers are usually farmers and investors. High commodity prices, inflation and still low interest rates are of particular interest to investors this year.
“We’ve seen an influx of these buyers more than in the past,” Schaefer said.
Sales of farmland, particularly at auction, typically slow down at this time of year as farmers focus on planting the new crop. The last spring auction on its calendar was set for March 29.
Things are changing so rapidly now that a sale four months ago is considered an “old sale” for valuation purposes, she said. For this reason, Compeer now creates a monthly report to stay up to date.
Due to demand, the turnaround time for appraisals is also longer, said Seth Baker, a certified farm manager for field-level farming in Mt. Zion, Illinois.