Illinois farmland values up
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[AUG. 28, 2006]
URBANA -- In 2006, Illinois farm real estate
enjoyed its best year on record, with the per-acre average at
$3,800, said a University of Illinois Extension farm management
"This figure was 14.1 percent higher than the revised 2005
average of $3,330 per acre," said Dale Lattz. "The 2005 revised
figure was 27.6 percent higher than 2004 and was the highest
increase since a 37.3 percent increase in 1977.
percent increase was the second-highest since 1979."
Farm real estate values have shown a year-over-year increase
every year since 1988, Lattz noted, or for 19 consecutive years.
Since 2000, Illinois farm real estate values have increased 68
The figures were calculated by the USDA's National
Agricultural Statistics Service, which releases estimated farm
real estate value and cash rents by state. The estimates are
based on surveys of farmers from selected geographical areas and
follow strict statistical guidelines.
"The average farm real estate value figure includes the value
of all lands and buildings," Lattz noted.
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Since 1970, average farm real estate values have declined only
five times as compared with the previous year. Those years were
1982, 1983, 1985, 1986 and 1987. There have been four years when
farm real estate values increased over 20 percent -- 1974, 1976,
1977 and 2005. The largest increase was in 1977, when values rose
"In a survey by the Illinois Society of Professional Farm
Managers and Rural Appraisers, the top three factors given for the
recent increases in farmland values are the large number of 1031
buyers -- those who are buying land to replace land they sold to
avoid capital gains tax, the limited supply of farmland, and low
interest rates," Lattz said.
The full report, "Increase in Illinois Land Real Estate Values
Accelerates," is available online at
of Illinois Extension news release]