Central Illinois Land Values
It has been quite some time since we have experienced volatility in the agricultural market like we are seeing today. In the past, we would reference trends in the market over a three, five, or even ten-year time period. Today, we are viewing and measuring trends in the terms of months.
Across Compeer’s three-state territory, there are established benchmark farms which are appraised annually. These benchmarks are used to track changes in land values across the association. With the dramatic increase in land values we are currently seeing, we have started a project to update the value of the benchmark farms every month. This project, which was retroactively initiated in September of 2021, has a monthly report completed as of the first of each month.
As an appraiser in Illinois, responsible for Stark, Western Marshall, Peoria, Tazewell, and Mason County. Within Tazewell County are three benchmark farms which I oversee updating. The farms vary in terms of their soil quality which provides valuable perspective of the current land market for Class A, Class B, and more marginal farms. Here is a recap of the Tazewell County Benchmarks:
Wright Farm: 156.65 acres near Washington, Illinois, with an average Productivity Index rating (PI) of 142. Appraised value as of July 1, 2021: $12,500/acre
Nafzinger Farm: 136.30 acres near Deer Creek, Illinois, with an average PI of 136. Appraised value as of July 1, 2021: $11,000/acre
Fornoff Farm: 319.00 acres near Manito, Illinois, with an average PI of 100. Appraised value as of July 1, 2021: $8,500/acre
The Below Charts show the results of the benchmark updates through February of 2022 and the percent change from July 2021 to present.
As evident from the above charts, there have been substantial increases in the land market here in Central Illinois. With historically low interest rates, rising inflation, and high prices for commodities, a decline in land values does not appear to be on the horizon this year.