“Overall, land values increased by 5 percent during the first half of 2012,” says Don McCabe, AFM, chairman of the Society’s Illinois Land Values project and president at Soy Capital Ag Services, Bourbonnais, IL “This is less than the double-digit increases we’ve seen the past few years.”
On July 1, 2012, farmland prices averaged $11,200 for excellent quality farmland, $9,200 for good quality farmland, $7,800 for average quality farmland, and $5,900 for fair quality farmland. A year ago the 2011 Mid-Year survey indicated the value of the best quality land surpassed $10,000 for the first time.
McCabe also noted that the volume of farmland being sold during the first half of this year was down slightly when compared to a year ago. “Most survey respondents expect the volume of sales to be at last year’s level or greater during the second half of the year,” he explained. Forty percent expect higher sales volume while 42 percent expect the same volume.
Among the key findings:
- Respondents indicate that land values increased by 5 percent during the first half of 2012.
- Sixty-four percent of those surveyed expect farmland prices to increase over the next 12 months.
- Most expect corn prices to average between $7 and $8 per bushel for the 2012 crop. 28% expect prices over $8 per bushel while 63% expect average prices between $7 and $8. Nine percent expect prices between below $6.
- For soybeans, 49% expect prices between $15 and $16 per bushel. Sixteen percent expect prices above $16. 21% expect prices between $14 and $15 and 14% expect prices below $14.
- Respondents expect 2013 rents to average slightly higher than 2012 levels.