Illinois farmland values continue upward spiral
12. Areas with higher concentrations of livestock – dairy, hogs, poultry – had generally more favorable markets for their production in 2011.
13. Pasture rents have not moved significantly over several years, and can vary widely from $5/ac to more than $60/acre depending on quality or carrying capacity, water source, and contribution to upkeep and maintenance of the land and fences.
14. Variable cash rent leases grow in popularity and pay landowners competitively higher returns in 2011 due to higher average prices and excellent soybean yields.
15. Wind farm activity, where already planned or under construction, continued to impact land values and add to total return in 2011. However changes in tax, policy, and funding have slowed the progress of many wind tower projects.
16. In some areas larger percentage increases for lower productivity land were noted, based on expectations of improving crop returns, and absolute increases on lower values resulting in larger percentage growth.
17. Continuing fixed cash rent rates generally showed a tendency to lag other lease and operating contracts as income returns and commodity markets have been in a general up trend over several successive crop years.
18. By year end 2011 price paid per productivity index (PI) point per acre was running in the upper $60s to mid $70s. One central Illinois region’s data calculated excellent soils averaging $73/PI, good soils $64/PI, and average and fair soils at $60/PI.
19. In many areas of the state it was a challenging crop production year in 2011, with wide variations in conditions from too much rain at times in some locations, to very hot and dry conditions in some areas later in the summer.
20. Calhoun County peaches are seasonally very popular and exceptionally good. (Region 7 slipped in some product-placement advertising.)
21. The generally wet spring throughout the state accentuated the importance of good drainage and much drainage tile and waterway improvement work was done throughout the year. Well-drained or pattern-tiled land will sell for a premium, especially if there are well-documented and accurate maps of drainage improvements.
22. Land value for crop production continues to gain on values for development land, as cropland increases and development land declines or holds steady.
23. The number of tracts and amount of acres transacted was generally more than previous years, as higher prices pulled supply onto the market.