Prices paid for Illinois farmland continue upward ascent
Rents Up, Too
In general, land rental incomes received by landlords were higher in 2012 compared with 2011 figures. “For excellent quality farmland, traditional crop shares had average income of $345 per acre, cash rent had $348 per acre, and custom farming had $490 per acre,” Schnitkey explains. Returns from share rent and cash rent leases were near one another in 2012 across all land qualities. Custom farming had the highest returns. He notes that 43 percent of the leases in 2013 will be share rent leases. Rates for cash rent leases are expected to stay the same for the coming year unless commodity prices decline to significantly low leverls. The majority of the lease arrangements are still one year in length.
Other points noted in the survey include:
- Estate sales accounted for 58 percent of the volume of land on the market. The next category was retiring farmers.
- Farmers accounted for 72 percent of the purchases made in 2012 as they reinvested into their businesses. Individual investors were the next largest group.
- 44 percent of the transactions were sold by public auction. 13 percent by multi-parcel auction and 35 percent privately.
The complete Illinois Farmland Values and Lease Trends Report is available at $15 per copy. The 104-page document can be ordered online at http://www.ispfmra.org/. The information is divided into 10 geographic regions across the state and includes 2001-2012 Land Values Summary Charts by region broken down by Productivity Index categories.