What’s Holding Up Land Values? A View from Central Illinois
In a region dominated by row crops, farmland values in Bureau, Lee, Whiteside and Putnam counties have remained relatively stable, despite ongoing market headwinds. There’s still strong interest from local farmers and outside investors alike, even as commodity prices soften and interest rates stay elevated.
Corn and soybean operations continue to characterize the market across this area of northern Illinois. Most farmland appraisals are focused on those traditional row crop tracts, with a smaller share of recreational parcels and livestock facilities in the mix. While input costs have remained high, timely planting and favorable weather suggest that farmers may see strong yields this fall – helping to shore up income and maintain land demand.
Fewer farms have hit the market compared to a year ago, but any property in a desirable location still draws serious attention. If the piece of land is near home – perhaps the one you’ve watched for years out the kitchen window – you’ll likely see competitive bidding, even at today’s borrowing costs. That kind of personal tie still plays a major role in driving local sales.
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At the same time, outside investor activity continues to support overall values. Whether it’s farmland funds or individuals diversifying beyond the stock market, that additional buyer interest helps keep the market resilient.
Green energy hasn’t been a major factor shifting values lately. Wind farms are already established in some parts of the region, and while solar development has been discussed, few new projects have moved forward – potentially due to changes in the solar tax credit.
While property with infrastructure like wind turbines can be more complex to evaluate, it doesn’t always command a premium. In one recent example, a tract with two turbines sold for less than expected. But after some clean-up and care, it became a strong investment for the new owners – proof that potential still exists, even on less-than-perfect ground.
Looking ahead, stability remains the expectation for farmland values in this area. Interest rates and broader economic factors will continue to influence decisions, but local demand is holding steady.
For more insight into farmland in northern Illinois or to connect with a local appraiser.
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