The value of farmland in Illinois increased significantly across all classifications in 2022, according to the Illinois Farmland Values and Lease Trends report. The report, published annually by the Illinois Society of Professional Farm Managers and Rural Appraisers, includes data on various types of farmlands such as excellent, good, average, fair, recreational and transitional tracts.
The average value of Class A farmland increased by 16%, while Class B increased by 17%, and Class C by 7%. Recreational land value saw the most significant increase of 17%. The report also revealed a rise in farm transitions by 17% compared to the previous year, with 25% more Class A farms sold.
While inflation remains a concern for farmland values, Gary Schnitkey, professor of agricultural and consumer economics at the University of Illinois, said that farm incomes in 2022 were positive, with excellent land productivity commanding cash rents of up to $454 per acre. Schnitkey noted that there was a considerable range in cash rents across different land qualities, with some farm managers favoring variable cash rent leases over traditional cash rent leases.
Despite some concerns over interest rates, farm managers expect a stable market in 2023 with minimal changes in farmland prices.
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Categories: Illinois, Rural Lifestyle