Farmland Prices Remain Strong

AgriMarketing reports that Illinois, Indiana, and Ohio real estate activity increased during the last quarter of 2009, according to Roger Hayworth, area sales manager for Farmers National Company.

“As we close in on year-end 2009, the overall real estate trend in the Eastern Cornbelt remains positive. Demand for farmland remains strong, primarily among local farmers/landowners, as competition to add additional acres and the desire to expand has steadied the values seen in early 2008,” Hayworth said.

Hayworth believes that depending upon the location of property and productivity ratings, the property being sold shows demand for land remaining high with active pursuit for current buyers.

Sellers are seeing an opportunity and responding. He expects this trend to continue and results, although still a little early to catch an overall trend in valuation, show pricing levels will be stable with possible increases within pocket areas. Local farmers/landowners competed vigorously for available parcels and pushed the land to new highs in mid to late 2008 and the trend seems to continue with caution. Commodity prices have been one of the greatest influencing factors for land prices the last 12 months.

Grade A soil types in mid to north-central Illinois are selling for $6,500 to $7,000 an acre, according to Hayworth. In central Illinois, the figures drop to $5,000 to $6,200 an acre, while southern Illinois acres are selling in the $4,000 to $5,000 range.

Indiana land owners aren’t seeing the prices being paid in Illinois, with Type A soils bringing $4,500 to $6,000. Ohio, Hayworth reports that land in the northwestern part of the state is in the $5,500 range, while in west-central Ohio, ranges of $4,000 to $5,000 an acre can be expected.