Illinois Farmland Values Continue Upward Trend

The Society conducts a survey half way through the year to evaluate trends in farmland prices and cash rents.

Published on: Aug 30, 2012
c. Average quality farmland: Respondents indicated that average cash rent in 2012 was $268 per acre and expect 2013 rents to average $272 per acre, a $4 per acre increase. In 2011, respondents expected a $28 per acre increase from 2011 to 2012.

d. Fair quality farmland: Respondents indicated that average cash rent in 2011 was $212 per acre and expect 2013 rents to average $214 per acre, a $2 per acre increase. In 2011, respondents expected a $24 per acre increase from 2011 to 2012.

6. Most respondents expect the 2013 corn price to be between $6 and $7 per bushel: 3 percent believe prices will be above $8 per bushel, 18 percent between $7 and $8 per bushel, 49 percent between $6 and $7 per bushel, 27 percent between $5 and $6 per bushel, and 3 percent below $5 per bushel.

7. Most respondents expect 2013 production costs to increase slightly over 2012 levels. Seventy-six percent believe they will increase slightly, while 5 percent expect large increases. Fourteen percent expect production costs to remain the same. Five percent expect cost decreases.

Leasing Arrangements
8. For 2012, survey respondents indicate that the following leasing arrangements were used as a percent of rented acres:

a. Share rent - 24 percent,

b. Share rent with modifications -13 percent,

c. Fixed cash rent - 35 percent,

d. Variable cash rent - 20 percent,

e. Custom farming - 8 percent.

9. Respondents do not see much change in lease types moving into 2013:

a. Share rent (decrease - 5 percent, the same - 90 percent, increase - 5 percent),

b. Modified share rent (decrease - 5 percent, the same - 95 percent),

c. Cash rent (the same - 100 percent),

d. Variable cash rent (the same - 85 percent, increase - 15 percent), and