Each year, the USDA’s National Agricultural Statistics Service releases an estimate of average farm real estate values by state. Estimates are based on surveys of farmers in selected geographic areas. The surveys follow strict statistical guidelines. Estimated values may be revised the following year based on additional information. Revisions may also be made based on 5-year Census of Agriculture data. The methodology and timing of the study have changed over time, but the statistical information provides insight into changes in farm real estate values from year to year.
Average Farm Real Estate Value in Illinois
The average farm real estate values in Illinois from 1970 to 2022 are listed in Table 1 and graphically in Figure 1. The average farm real estate value in Illinois in 2022 was $8,900 per acre. This includes the value of all land and buildings. The figure was 12.7% above the 2021 average of $7,900 per acre. This is the first double-digit increase in values since 2013. With a 12.7% increase in the average value of farm real estate from 2021 to 2022, the average value of farm real estate in Illinois for 2022 was 25% higher than the 2013 value of $7,100 ten years ago.
Since 1970, the average value of agricultural real estate has decreased only six times compared to the previous year. These years were 1982, 1983, 1985, 1986, 1987, 2009, 2015, 2016 and 2017. There were four years when the value of agricultural real estate increased by more than 20%, in 1974, 1976, 1977 and 2005 The biggest increase was in 1977 when values increased by 37.3%.
From 1995 to 1999, the average value of farm real estate increased by 4.2% to 9% per year. From 2000 to 2004, agricultural real estate increased between 1.3% and 5.3%. From 2005 to 2009, the variation in the average values of agricultural real estate varied from -2.2% to 25.4%. From 2010 to 2014, the increase in farm property values ranged from 5.4% to 15.2%. From 2015 to 2020, the evolution of agricultural land values did not vary much, ranging from -1.7% to 1.7%.
Farm real estate value data is used to construct Illinois farmland value indices. The index is here to farmdoc website. This index can be used to estimate current or past value using purchase price or valuation. In addition to this index, excel tools that do the math for you can be found here. In addition, you can also use a cropland indexing tool there.