2016 farmland values decrease according to ISPFMRA Survey
March 23, 2017, 1:00 CT from Soy Capital Ag Services (www.soycapitalag.com)
BLOOMINGTON, IL.; March 23, 2017 – David Klein, Soy Capital Ag Services’ Managing Broker/Auctioneer and Chairman of the Illinois Society of Professional Farm Managers and Rural Appraisers Farmland Values and Lease Trends Committee released the annual survey report from members of the group this morning at their annual Land Values Conference. (http://www.ispfmra.org/).
The report highlights the continued downward trend of farmland values during the calendar year 2016. Excellent Quality land was found to be 5%, Good Quality land down 6%, Fair quality land down 12% and Poor Quality land down 14%. Recreational land was considered to be steady in comparison to 2015.
According to Klein, “Factors such as grain prices, rising interest rates, uncertainty about government policy and generally larger tract sizes all played a part in the results.” Farmers are still the main buyers of farmland, although we see renewed interest at these lower levels from institutional investment firms and individual investors looking to farmland as a possible safe-haven against possible future inflationary pressure.
The highest quality tracts continue to bring top prices at recent auctions, and a tightening farmland market supply may be propping up values. Klein noted that the first quarter of 2017 “seems to show a slight increase in farmland values as compared to the last half of 2016, although the farms sold so far in 2017 have also had a higher percentage tillable and tended to be smaller in size.”
Lease trends are found to be changing slightly lower as well, but at a slower pace. Individuals interested in additional information may visit www.soycapitalag.com or call 800-532-LAND for details.
Soy Capital Ag Services is a division of Soy Capital Bank & Trust Company, headquartered in Decatur, Illinois, a diversified financial services company with offices in Bloomington, Bourbonnais, Champaign, Decatur, Peoria & Springfield, Illinois.
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