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Illinois farmland prices to fall in first half of 2024
According to the Illinois Society of Professional Farm Managers and Rural Appraisers, farmland values in the state fell in the first half of 2024.
Luke Worrell, chair of the organization’s Farmland Values & Lease Trends Committee, tells Brownfield the results of their mid-year survey were as expected, largely due to lower commodity prices.
“We saw a decline in Class A land values of about 5% in the first six months of the year and a decline in Class B and C land values of about 8 to 10% in the first half of the year,” he says.
He assumes that this decline will continue, but that it will also lead to a decline in average cash rents.
“Rent typically increases with land values and farm yields.” He says, “And it is predicted that we will see a 7 to 8 percent decline in rent by 2025.”
Worrell said variable leases now make up about 35 percent of contracts in the state. He says the survey also shows that about a third of Illinois farm managers have contracts with wind or solar projects on at least one farm they manage.
A full summary of the survey results can be found HERE.
AUDIO: Luke Worrell – Illinois Society of Professional Farm Managers
