Source: University of Illinois

Unlike many other assets whose values have tanked this past year, farmland prices have not fallen during the recent troubled economic times.

A recent University of Illinois report examined this phenomenon. The report is an installment of Farm Economics Facts and Opinions and is posted on the University of Illinois farmdoc Web site.

"Currently, farmland prices in Illinois are in line with historical relationships suggested by capitalized values," said Gary Schnitkey, a U of I professor of agricultural and consumer economics and farm management specialist. "These capitalized values take into consideration cash rent and interest rate levels. The rise in commodity prices experienced this summer and fall likely will lead to upward pressure on cash rents, thereby leading to even higher farmland prices." 

Original news release