Farmland values in states like Illinois remain sold. Central and Southern Illinois land values increased 7.49 percent on average from last year. That’s according to a 2024 study of 22 benchmark farms by the Farm Credit Illinois appraisal team. Eighteen of the 22 benchmark farms increased in value, and 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 benchmark values, the average year-over-year percentage changes across the four land classes ranged from 3.6 to 14.05 percent. “Farmland values 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.” Interest rates, higher cash rents, and lower commodity prices could affect land values in the coming year.
-NAFB