The average value of farmland in Illinois increased by 4.5% in 2023, according to the Illinois Society of Professional Farm Managers and Rural Appraisers. This is the third consecutive year that farm real estate values have increased in the state.
The increase in farm real estate values is being driven by a number of factors, including strong commodity prices, low interest rates, and limited land availability. Commodity prices have been on the rise in recent years, due to factors such as increased demand from China and other emerging markets. Low interest rates make it more affordable for farmers to borrow money to purchase land. And limited land availability is driving up prices, as there is less land available for sale.
The increase in farm real estate values is good news for farmers, as it means that they can earn more money from selling their land. However, it is also making it more difficult for new farmers to enter the industry, as they need to have more capital to purchase land.
The average value of farmland in Illinois in 2023 was $9,300 per acre. This is up from $8,900 per acre in 2022. The highest-valued farmland in the state is in the northern region, where the average value was $16,000 per acre. The lowest-valued farmland is in the southern region, where the average value was $6,000 per acre.
The increase in farm real estate values is expected to continue in 2024, albeit at a slower pace. Commodity prices are expected to remain strong, but interest rates are expected to rise. This will likely temper the increase in farm real estate values, but it is still expected to be positive.
The increase in farm real estate values is a sign of the health of the agricultural industry in Illinois. Farmers are profitable, and they are investing in their businesses. This is good news for the state's economy, as agriculture is a major driver of economic growth.
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Categories: Illinois, General