Each year, the USDA’s National Agricultural Statistics Service releases estimated average agricultural real estate values by state. The estimates are based on interviews with farmers in selected geographic areas. The surveys follow strict statistical guidelines. Estimated values can be revised in the following year based on additional information. Revisions can also be made based on data from the 5-year agricultural census. The methodology and timing of the study have changed over time, but the statistical information provides insight into how farm property values have changed from year to year.
Average Agricultural Property Value in Illinois
Average agricultural real estate values in Illinois from 1970 to 2022 are listed in Table 1 and graphically in Figure 1. The average agricultural real estate value for Illinois in 2022 was $8,900 per acre. This includes the value of all land and buildings. The figure was 12.7 percent above the 2021 average of $7,900 per acre. This is the first double-digit increase in value since 2013. With average farm property values increasing 12.7 percent between 2021 and 2022, the average farm property value in Illinois for 2022 was 25 percent up from 2013’s $7,100 years earlier.
Since 1970, average farm property values have only fallen six-fold from a year earlier. Those years were 1982, 1983, 1985, 1986, 1987, 2009, 2015, 2016, and 2017. There were four years in which farm property values increased by over 20 percent, 1974, 1976, 1977, and 2005. The largest increase was in 1977 when values rose 37.3 percent.
From 1995 to 1999, average farm property values rose between 4.2% and 9% annually. From 2000 to 2004, agricultural real estate increased by 1.3% to 5.3%. From 2005 to 2009, the change in average agricultural property values ranged from -2.2% to 25.4%. From 2010 to 2014, agricultural real estate values increased between 5.4% and 15.2%. From 2015 to 2020, the change in agricultural property values did not change much, ranging from -1.7% to 1.7%.
The farm real estate value data is used to construct index numbers of Illinois farm land values. You can find the index here farmdoc Website. This index can be used to estimate a current or past value based on purchase price or appraisal. In addition to this index, you will find Excel tools here that do the calculation for you. Also, you can use a farmland index tool there as well.