Illinois Farmland Prices 20% Higher Than 2011

Strong demand for farmland translated into 20% to 21% annual increases on average across the state of Illinois in 2011, according to the annual survey conducted by the Illinois Society of Professional Farm Managers and Rural Appraisers.

The powerful gain seen in 2011 compares to average yearly annual increases of 6.7% across Illinois from 1970 through 2011, said Dr. Gary Schnitkey, University of Illinois ag economist who assists with the survey.

Respondents remain generally positive toward future price increases – 68% expect farmland price increases to average between 0% and 5% over the next five years while only 6% expect a decline.

Respondents however are somewhat more cautious compared to a year earlier. Last year’s survey found no one expected farmland values would decline by 20% in 2011. This year, 12% think there is more than a 10% chance of a 20% drop in values in 2012.