Farmland values throughout central and southern Illinois increased 7.49% on average from last year, according to the 2024 study of 22 benchmark farms by the Farm Credit Illinois (FCI) appraisal team. The study has occurred annually since 1974.
Land values had a dramatic run-up beginning in 2003 until peaking in 2014. The first decline in more than a decade occurred in 2015 and continued a slight decline through 2018. From that point, land values increased each of the next five years and hit new highs in both 2023 and 2024.
Eighteen of the 22 benchmark farms increased in value while four remained unchanged. Results across all land classes showed considerable variation, reinforcing that agricultural real estate is a location-specific asset. When considering the individual benchmarks values, the average year-over-year percentage changes across the four land class categories ranged from +3.6% to +14.05%.
“Farmland values in 2024 remain strong despite higher interest rates and lower commodity prices,” says Kent Reid, Farm Credit Illinois chief appraiser. “Values remain consistent with the peaks set in 2023 due to constant demand for Illinois farmland coupled with limited supply of farms.”
The 2024 benchmark update for the Farm Credit Illinois territory shows continued strength in the farmland market. The economic health of farmers and farm owners remains stable, but there are still pressures on farmers’ financial positions. Interest rates, higher cash rents, and lower commodity prices this fall will be a challenge that could affect land values in the upcoming year. Overall, an increase of 7.49% indicates a solid market throughout FCI’s 60-county territory. While values as of mid-2024 were at an all-time high, low commodity prices this fall and winter will bring challenges to the market that warrant careful monitoring.
Read an in-depth analysis in the full report at www.farmcreditIL.com/benchmark.
