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Land values had a dramatic run-up beginning in 2003, until
peaking in 2014. The first decline in more than a decade began
in 2015 and continued a slight decline through 2018. From that
point, land values increased again for five consecutive years,
hitting new highs in 2023. While this sets a new peak for the
study, 2023 values rose more moderately than reported in 2022.
Fifteen of the 20 benchmark farms increased in value while one
showed a slight decline. 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 year-over-year changes ranged
from -5.3% to +31.3%.
"Farmland in 2023 continues displaying its strength despite
rising interest costs,” says Kent Reid, Farm Credit Illinois
chief appraiser. “A new peak in the market was set once again,
influenced by profitable commodity prices, constant demand
coupled with limited supply of farmland, and stabilized balance
sheets on many farms."
The 2023 benchmark update for the Farm Credit Illinois territory
shows continued strength in the farmland market. The economic
health of farmers and farm owners is mostly stable, but there
are still pressures on farmers’ financial positions. Increasing
interest rates, rising cash rents, and fluctuations in commodity
prices will be a challenge for the upcoming year. Overall, an
increase of 8.1% indicates a solid market throughout FCI’s
60-county territory. Farmland values hit record highs in 2023
and all signs indicate they will remain at this level in the
near-term.
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Read an in-depth analysis in the full report at
www.farmcreditIL.
com/benchmark.
About Farm Credit Illinois
Farm Credit Illinois (FCI) is an agricultural lending cooperative
owned by 18,000 farmer, rural landowner, and agribusiness voting
stockholder members in the southern 60 counties of Illinois.
Dedicated to Helping Farm Families Succeed, FCI provides competitive
and flexible financing, crop insurance expertise, and Rural 1st®
country life lending. FCI manages a $6 billion loan portfolio, sells
1.5 million acres of crop insurance coverage, and employs 280 staff
in the Mahomet headquarters and 14 regional offices. The Association
returned $40 million of 2022 earnings as cash patronage to
member-borrowers in 2023. The U.S. Farm Credit System is a network
of locally owned cooperatives supporting rural communities, farm
families, and agriculture with reliable, consistent credit and
financial services today and tomorrow.
[Liz Harder
Communication & Content Manager]
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