2016 Illinois Land Values and Lease TrendsLV+Report+for... · tion and presents several speakers to share the latest trends and ownership issues of the diverse ownership of farmland

1ILLINOIS FARMLAND VALUES & LEASE TRENDS

2016Illinois

Land Valuesand

Lease Trends

Published by theIllinois Society of

Professional Farm Managersand Rural Appraisers

2 2016 ILLINOIS LAND VALUES CONFERENCE


Region Map

1. Northeast

2. Northwest

3. Western

4. North Central

5. Eastern

6. Central

7. West Central

8. Southwest

9. Southeast

10. Southern



Table of ContentsRegion Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

ISPFMRA President’s Message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2016 ISPFMRA Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

It Takes a Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Highlights - Illinois Farmland Values and Lease Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Farm Property Classifications and Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Region 1 – Northeast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Region 2 – Northwest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

Region 3 – Western. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Region 4 – North Central . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Region 5 – Eastern . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45

Region 6 – Central . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Region 7 – West Central . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Region 8 – Southwest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Region 9 – Southeast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81

Region 10 – Southern . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87

Farmland Price Decline Expected to Continue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

Drop in Cash Rent Levels Will Continue in 2016 . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .97

Interest Rates in Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

Commercial Sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

Index of Advertisers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

Illinois Productivity Index Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Inside Back Cover


ISPFMRA President’s Message

Richard H. Hiatt, AFM, ARAPresidentIllinois Society of Professional Farm Managers and Rural Appraisers

Welcome to the Illinois Farmland Values and Lease

Trends Report for 2016. I also hope you attended the Conference we hold to introduce the Report in

March of each year. The conference summarizes the informa-tion and presents several speakers to share the latest trends and ownership issues of the diverse ownership of farmland in Illinois.

The Illinois Society of Professional Farm Managers and Rural Appraisers, which was established in 1928, is excited to present this information reflecting the farmland activities for the past 12 months. The members of this proud organiza-tion report from 10 regions in the State of Illinois. You can see the chairman of each region listed in the next few pages. Please feel free to contact anyone of them for additional de-tails or questions you may have from your region. Additional members collect the data from each region and organize it for Dr. Gary Schnitkey, Ph.D. and Dr. Bruce Sherrick, Ph. D. to analyze the data into a presentable form. We are very appreciative of these two professors from the University of Illinois who make this data available in a comparison format. A very special thanks goes out to members of the Illinois Chapter of Realtors Land Institute who also offer their profes-sional expertise in gathering the data. Please take a minute to thank those listed in this report and the members of the organizations for their work.

We, the members of Illinois Society of Professional Farm Managers and Rural Appraisers, consider it a privilege to work with the richest farmland, owners of the farmland, and other agriculture professionals to maximize the farmland potential, while preserving its richness and keeping it fertile to feed the world population. There is a delicate balance with productivity, value and proper management practices that we incorporate to maintain our rich farmland. Our members excel to Accreditation standards established by the American Soci-ety of Farm Managers and Rural Appraiser, thereby endorsing men and women of our organization with the highest ethical and professional standards which you, the client, can trust.

This is our 21st edition of the Land Values & Lease Trends Report. A big thank you goes out to the advertising compa-nies and individuals who provide the support for this report to give you the latest information in detail of land values and lease trends. Do not hesitate to call one of our professional members with a question or to provide a competent service for your needs. Members and information may be found on the web site, www.ispfmra.org.

Sincerely,


2016ISPFMRA Board of Directors

President-Elect

Eric Wilkinson, AFM Hertz Farm Management, Inc. (815) 935-9878 [email protected]

Vice President

Dan Legner, ARA 1st Farm Credit Seervices (815) 872-0067 [email protected]

Secretary/Treasurer

Gary Schnitkey, Ph.D. University of Illinois (217) 244-9595 [email protected]

Academic Vice President

Phil Eberle Southern Illinois University (618) 453-1715 [email protected]

Immediate Past President

Randal Fransen, AFM First National Bank of Dwight (815) 584-1400 [email protected] Executive Director Carroll E. Merry ISPFMRA (262) 253-6902 [email protected]

President Richard H. Hiatt, AFM, ARA Hiatt Enterprises (815) 842-2344 [email protected]


It Takes a Team . . .General Co-Chairs

Dale Aupperle, AFM, ARA David Klein, AFM, ALC

Heartland Ag Group, Ltd. Soy Capital Ag Services1401 Koester Drive, Ste. 100 #6 Heartland Drive, Suite AForsyth, IL 62535 Bloomington, Il 61702Phone: (217) 876-7700 Phone: (309) 665-0961

Head - Survey GroupGary Schnitkey, PhD University of Illinois 300A Mumford Hall

1301 W. Gregory DriveUrbana, IL 61801

Phone: (217) 244-9595

Regional Data GroupDaniel Davis, AFM, ARA

Arch Ag LLC.2 Owl Nest Lane

Columbia, IL [email protected]

Regional Data GroupCharles Knudson, ARA, RPRA

1st Farm Credit Services2005 Jacobssen Drive

Suite CNormal, IL 61761

Phone: (309) 268-0286

Regional Data GroupBruce Sherrick, PhDUniversity of Illinois

College of ACES1301 W. Gregory Drive

Urbana, IL 61801Phone: (217) 244-2637

Advertising GroupJonathan Norvell, PhD, AFMUniversity of Illinois506 S. Wright St.Urbana, IL 61801(217) 244-6352

Land Values ConferenceLuke Worrell, AFM, ALC

Worrell Land Services, LLC2240 West Morton Avenue

Jacksonville, IL 62650Phone: (217) 245-1618

Reid L. Thompson, AFMHertz Farm Management, Inc.Phone: (217) 762-9881Cell: (309) [email protected]

Region 1 Douglas Deininger, ALC

Land Pro LLC2683 US 34, Oswego Il 60543

Phone: (815) 439 [email protected]

Region 2 David Dinderman

1st Farm Credit Services705 E. South StreetFreeport, IL 61032

Phone: (815) 235-3171

Region 2 Todd Slock

1st Farm Credit Services207 W. 21st Street

Rock Falls, IL 61071Phone: (815) 587-4988


. . . of Professionals

Region 4 Ross Perkins

Soy Capital Ag Sercices#6 Heartland Dr., Suite ABloomington, IL 61702Phone: (309) 665-0059

Region 5Mac Boyd, ARA

Farmers National Co.109 East Main Street

Arcola, IL 61910Phone: (217) 268-4434

Region 6Bruce M. Huber, AFM, ARA

First Illinois Ag Group225 North Water St.

Decatur, Illinois 62523Phone: (217) 521-3537

Region 7Thomas L. Toohill, AFM

Soy Capital Ag ServicesSpringfield, Ill

Phone: (217) [email protected]

Region 8Dale Kellermann, AFMFirst Illinois Ag Group138 Eagle Dr., Suite BO’Fallon, IL 62269

Phone (618) 622-9490

Region 9David M. Ragan

Farm Credit Illinois1506 E. Fayette Avenue

PO Box 543Effingham, Illinois 62401

Phone: (217) 857-6450

Region 10Phil EberleSouthern Illinois [email protected]

Region 3 Herbert Meyer, ARA

1st Farm Credit Services7508 N. Kickapoo Edwards Road

Edwards, IL 61528 Phone (309) 360-5553


Illinois Farmland Values and Lease TrendsBy David E. Klein, AFM, ALC & Dale E. Aupperle, AFM, ARA

General Chairmen, 2016 Illinois Farmland Values Survey & Conference

2015 brought a wide variation of challenges for Illinois agriculture with swings in production and prices throughout the growing season. Most farm incomes continued to their retracement from recent historical

highs. As we begin 2016, the correction in the long-term uptrend across the globe in all asset classes is also being felt by farmland.

Our team of professionals from across the state has provided detailed information that we’re sure you will find inter-esting within this 2016 Illinois Farmland Values and Lease Trends Report. You will notice pockets of strength and weakness are reported by the various regions as we continue through this choppy market.

• ISPFMRA Members -- As you work within the Illinois farmland market you will encounter numerous Il-linois Society members in their roles as farm managers, rural appraisers, consultants and real estate brokers. These professionals have shared their experiences, expertise, opinions and data from their active files with you. It is the best you can get. Our thanks to the over 70 members that pitch in on this effort! A special thanks goes to Executive Director Carroll Merry and the team at Countryside Marketing who do an amazing job to produce this report each and every year!

• University of Illinois – The College of ACES is a collection of some of the brightest minds in agriculture – and Dr. Bruce Sherrick and Dr. Gary Schnitkey are among the best and most respected around. They unselfishly share their talent and time with us to produce this unmatched report. Bruce works with the real estate data from each regional data group and is constantly giving us ideas on how to further investigate the Illinois farmland market for changing trends and data-driven information. Gary is an expert at surveys and coordinates our mid-year snapshot and year-end surveys on farmland values and lease trends. Several other professionals in the Col-lege of Agricultural Consumer and Environmental Sciences contribute to our Report by writing the articles that you will find in the addendum of this report.

• Realtors Land Institute – The members of the Illinois Farm and Land Chapter of the Realtors Land Institute are experts who work in the farm real estate market across Illinois every day. They know the market as well as anyone. A special thanks goes to Executive Officer Jill Bernahl, who coordinates our annual professional con-tinuing education efforts at the Land Values Conference.

• Our Sponsors – A special note of thanks goes to the individuals and firms who advertise in our report and support the Land Values Conference each March. You will find these businesses actively promoting agriculture in their respective areas.

2015 Land Values and Rental Rates- There is a lot of information in this Report to covers all 10 regions of Illinois. As a quick executive summary, we show the excellent quality farmland in each region of the state to exhibit the overall 2015 trend in land values and cash rents as noted below:

Excellent Quality Cash Rent Region Farmland Values Values

(from 2014) (from 2014)

Northern Illinois (Regions 1&2) $11,000-$13,500 per ac. (Down 5-10%) $300-350 per ac. (Down 10-20%)Central Illinois (Regions 3,4,5,6 & 7) $10,000-$13,000 per ac. (Down 5-10%) $300-375 per ac. (Down 10-15%)Southern Illinois (Regions 8,9,10) $8,000-12,500 per ac. (Unch. To Down 10%) $160-285 per ac. (Unch. to Down10%)


In our year-end survey – we get some clear insight as to how farmland values have retraced in the past year.

Estimate of Land Price, Beginning and Ending of 2015 Date PercentProductivity January 2, 2015 December 31 2015 Change

$ per acre _________________________________________Excellent 12,600 11,600 -8%Good 10,600 9,700 -8%Average 8,500 7,700 -9%Fair 6,500 6,000 -8% Note – We have passed the tipping point from chopping sideways to trending generally lower in 2015.

ISPFMRA and RLI Members monitor the pulse of the Illinois farmland market every day. Dr. Schnitkey captured their observations and outlook in our year-end survey. Here are some of the interesting facts that you can find out by reading Gary’s report and the end of this report:

• Sellers of Farmland - Estates accounted for 54 percent of the volume of Illinois farmland sold. Will there begin to be a higher percentage of other categories in 2016?

• Buyers of Farmland - Farmers accounted for 60 percent of the purchase made in 2015. Most were reinvesting into their farm business – where they know the value as well as anyone! When farmers stepped aside, investors were looking for opportunities in an uncertain financial market.

• Methods of Sale - Most farms were sold by private treaty in 2015, a sign more negotiating was occurring. Thirty-five percent of the transactions were at auction. In an uncertain market, auctions can bring decision-makers together in a hurry! As a result, some firecrackers continued to be let off and more “no sales” occurred at auction.

• Cash Rents – Generally speaking, our farm incomes were lower in 2015 and are pro-jected to be even lower in 2016. This reduced crop share leases as compared to cash rents. Cash rents for 2015 declined by roughly $25 per acre to a $350 average on Excellent quality farmland. Most ISPFMRA members expect 2016 cash rents on Excellent quality soil farms to be another $25 per acre lower than the current year at $325 or less.

• Net Farm Income –Farmland is what it earns! Belt tightening can be heard throughout the coun-tryside. Lower corn and soybean prices will reduce net farm income by over 20 percent in 2016. Spring crop insurance prices will be the lowest since 2006, and input costs today are nearly double what they were then.

• Return on Investment - Our traditional 3.5-4.0 percent cash return on farmland investments is diminished by lower commodity prices. Those returns are now in the 2.0-2.5 percent range. Investors still find this acceptable when looking at alternatives.

• Interest Rates – Talk of rising interest rates continues to circle, but the struggling general economy continues to keep rates historically low. Our GDP right now doesn’t warrant an increase and there is no inflationary pressure.

• Dollar Exchange Rate – Other worldwide currencies have been devalued in the latter part of 2015 and early 2016. This makes U.S. Dollar-based grain more expensive on the world export market, as well as our farmland! It also slows down international investment here.


• Livestock Industry - Beef, swine and poultry production numbers are all planned to grow in 2016, but

livestock farmers have started to feel their own pinch of lower prices. These land buyers understand the value of “the farm next door” and continue to compete vigorously for additional farmland near their cur-rent facilities throughout the state.

• Auction Sales – Auction sales continue to show pockets of both strength and relative softness. Class A farms selling at Mt. Carroll for $14,400, Brimfield for $13,500, and Mendota for $12,000 early in 2016 show strength still exists in areas, but an increasing number of “No Sales” in November/December 2015 also shows that every farm auction isn’t bringing expectations every time. An auction takes two motivated buyers!

• Tract Sizes - Tract sizes were generally larger in 2015 than 2014. The largest tracts were often purchased at a premium by institutional or absentee investor landowners seeking to place significant holdings into farmland. Auctions on large tracts were met with mixed results.

• Transitional/Development Land – Fewer tracts of land were sold for development than in past years in downstate Illinois. More activity is picking up in the collar counties, which has led to a little 1031 ex-change money again.

• Institutional Money – Larger tracts of land have drawn interest again from institutional investors, pension funds and others. There may be a premium right now for bigger tracts.

• Drainage pays! – 2015 taught many landowners across the state the value of good drainage on our pro-ductive cropland. The ability to effectively move excess water and keep crops healthy resulted in wide productivity ranges and better returns on farms improved with tile drainage.

• 1031 Tax Free Exchange Influence – These continue to be used by landowners making even money trades to create larger tracts of land where they can be farmed more effi-ciently, as well as a slow increase in develop-mental exchange money out of the St. Louis, Chicago and Indianapolis markets.

• Farmland Availability – Farmland supply to the market remained fairly tight throughout 2015 until year end when the seasonal in-crease occurred in November and December. Most of our membership expects 2016 to see a larger supply come to the market this year.

In Summary:

2015 provided us a challenging year. Record crop harvests of our main crops the past two years led to downward pressure on prices. Farm income and farmland values are adjusting, but there are signs of optimism.

Interest rates and farm debt-to-asset ratios remain historically low as farmers manage their balance sheets. Crop input costs continue to come down.

Helping Americas Farmers Manage Risk

Give us a call at (800) 531-9909silveuscropins.com


Domestic beef, pork and poultry production are all project-ed to increase in 2016 – pork and poultry to record levels. Competition for land remains strong. With continued low interest rates and volatile equity markets, productive farmland continues to be a safe haven for both farmers and investors. Our ISPFMRA and RLI members are the experts in this industry. Rely on their wisdom, knowledge and guidance whether buying, selling, managing or appraising farmland in Illinois to help you meet your goals.


Friends of the Chapter We’re excited about a membership offering that might be right for you!

The Illinois Society of Farm Manag-ers and Rural Appraisers has widened its networking focus by creating a special membership category – “Friends of the Chapter.” We invite anyone with an interest in our orga-nization, but who does not otherwise qualify for membership (as practic-

ing farm managers, rural appraisers,

or agricultural consultants) to join us!

As a “Friend of the Chapter” you will enjoy all the benefits of the Illinois Chapter except voting rights. You will be listed as a Friend of the Chapter in our membership directory, and will receive the ISPFMRA Newsletter. You will qualify for discounted member rates on all Illinois Chapter-sponsored courses, meetings and events. Friends of the Chapter also en-joy a strong networking connection to our organization and its members as we focus on the business of agriculture.We encourage you, and any interested person who does not manage or appraise Illinois farmland or provide agricultural consulting as a business, to join us. We welcome you!For further information visit www.ispfmra.org and click on the “Friends of the Chapter” link.


Farm Property Classifications & Definitions To standardize our data collection, the following definitions were used in developing the various categories. Produc-tivity indexes based on Bulletin 811 are used in developing these profiles.

• Excellent Productivity Tract – productive durable soils with a significant amount of those soils with productivity indexes of 133 and above; well maintained; located in desirable community with excellent access to transportation and markets.

• Good Productivity Tract – productive soils with a significant amount of those soils holding productivity indexes of 117 to 132; located in desirable community with good transportation and market access.

• Average Productivity Tract – average-to-good soils with a significant amount of those soils with productivity indexes of 100 to 116; located in a community with ad-equate services available; fair transportation and market access; soils may show evidence of erosion, fertility loss, improper drainage or noxious weed infestations.

• Fair Productivity Tract – below average-to-fair soils with a significant amount of those soils with productivity indexes below 100; located in fair com-munity with fair-to-poor transportation and market access; topography may be adverse with serious hazards (flooding, erosion, etc.).

• Recreational Tracts – tracts are normally high in non-tillable acres with soils that may be subject to erosion and/or flooding. Tracts are typically purchased by nonresident owners for hunting, fishing and other recreational pursuits.

• Transitional Tracts – tracts that are well lo-cated and have good potential for development uses within a few years. Tracts may be used for commercial or residential uses.

Productivity Indexes (P/I) Ranges

Excellent 133 - 147 (Highest)

Good 117 - 132

Average 100 - 116

Fair Less than 100

(See Inside Back Cover for P/I map)



REGI

ON

1

Doug Deininger, ALC - ChairLandPro, LLC, Ottawa, IL

Nicole Bromberek1st Farm Credit Services, Ottawa, IL

Jeffrey Hacker, ARA1st Farm Credit Services, Bourbonnais, IL

Andy Weidner 1st Farm Credit Services, Sycamore, IL

Region 1 - Northeast

Region 1, or the collar counties, starts at the Indiana border and wraps around Chicago up to Wisconsin. The

region includes Will, Kankakee, Grundy, Kendall, LaSalle, Kane, DeKalb, Boone and McHenry counties. The western part of the region contains some of the most productive silty clay loam soils in the state. The eastern part of the region has more clay in its subsoil that sometimes inhibits drain-age, while other areas can have more sand that can make the soil droughty. Soil productivity is still very important in determining value, however region 1 is more influenced by location than any of the other regions. Proximity to city water/sewer or highway frontage can have a huge influence on value. Will county is home to the Ridgeport intermodal facility. It is the largest inland container port in the North America and also the proposed location for the South Sub-urban airport which has now acquired 3,900 of the 5,800 acres needed. Many of the large timber or wetland tracts have been purchased by county forest preserve districts.

In addition, using riverboat revenue, Kane County began buying development rights from landowners roughly 20 years ago with the intent to preserve open agricultural space. Rental rates vary widely across the region based primarily on soil type but also on the number of farmers in an area. Competition for land is not as great in Will County where there seems to be a void of young farmers staying on the farm

Excellent Tracts

Land values declined about 6% in this category though simple averages of actual sales can vary a bit more. Excel-lent land is found in the Western part of Region 1 primarily in DeKalb, Kendall, Grundy and LaSalle counties. Sales of top quality land sells in the range of $10,500 to $12,500 per acre. The volume of sales of this quality of land was down as sellers won’t part with this land unless it’s close to the

Land Value and Cash Rent TrendsOverall Summary

Total Value % Change Change in rate Avg. Cash Rent % Change Avg. Cash Rent/Ac. Per Acre in $/Acre from of land Per Acre from on recentlyFarm Classification (Typical) prior year turnover typical in region prior year negotiated leases

Excellent Productivity $11,900 Down 6% Steady $325 Down 10% $300 Good Productivity $8,800 Down 6% Steady $250 Down 10% $250Average Productivity $7,580 Down 5% Steady $200 Down 10% $200Fair Productivity $5,400 Down 7% Steady $125 Down 10% $125


high of 2013 levels. The area again saw 1031 trade activity of commercial property being rolled into agriculture. Given the uncertainty of the general economy /stock market, 100% occupancy of farmland with a good dividend still makes farmland appealing to investors. Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcGrundy Jan 40.00 98.0 142.0 11,500Grundy Aug 67.40 91.0 143.0 11,500LaSalle Jan 80.00 95.0 141.0 12,750LaSalle Dec 155.00 96.0 144.0 11,700Kendall Dec 147.00 88.0 139.0 11,150DeKalb Mar 155.00 98.0 140.0 11,718DeKalb Mar 42.00 95.0 142.0 11,600DeKalb Feb 239.00 95.0 141.0 12,469Boone Apr 65.00 92.0 138.0 8,500Boone Oct 80.00 96.0 142.0 10,205Average (acre weighted) 94.4 141.1 11,547

Good Productivity TractsGood quality tracts represented the largest volume of sales across region 1 and declined less in percentage terms than the Excellent tracts. Sales values averaged just over $8,000 per acre for Will and Kankakee counties while the rest of the region was closer to $8,900 for the same productivity. There were less auctions of land and more private sales during the year. No- sale auctions tracts early in the spring made listing or selling privately less of a risk. Tile drainage is especially important on this quality land, since it is likely to have higher subsoil clay content. Pattern tile is not typi-cally found in the region, but installing additional tile lines between old tile lines is often a great investment. Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcGrundy Mar 244.00 97.0 127.0 9,155Grundy Apr 80.00 94.0 124.0 9,923LaSalle Mar 80.00 96.0 125.0 9,000LaSalle Dec 90.00 98.0 130.0 9,113Kendall Apr 58.00 98.0 120.0 8,441Kendall Dec 115.00 98.0 123.0 9,050Kane Sept 227.00 94.0 130.0 9,400Kane Apr 40.00 94.0 129.0 10,100Boone May 205.00 92.0 127.0 7,900Boone June 80.00 86.0 116.0 7,600Average (acre weighted) 94.7 126.1 8,912

Average Productivity Tracts The volume of sales declined the most in this category, but also saw the most variability in prices. Values were down about 5 [ercemt in this category . Again, Will and Kankakee counties saw the sharpest decline. Similar productivity land in McHenry county often sells higher than land found in Will and Kankakee counties.

These average productivity tracts typically have more waterways, ditches or timber that makes farming them with large equipment more difficult. Large tracts with ditches that divide them often are discounted at least a $1,000 per acre when compared to all tillable similar productiv-ity tracts. Having crop insurance and the ability to receive government ARC or PLC payments is critical to offsetting typically lower expected crop yields on these soils.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcMcHenry Jan 77.00 73.0 115.0 7,221McHenry Jul 158.00 68.0 113.0 6,605Boone Aug 328.00 98.0 115.0 10,655Will Oct 38.00 99.0 114.0 5,700Kankakee Mar 170.00 94.0 106.0 7,306Kankakee Oct 51.00 93.0 116.0 6,930Average (acre weighted) 88.8 112.8 8,402


REGI

ON

1

x� Farm Management x� Farmland Brokerage

(Sales/Purchases) x� Farm Appraisals x� Trust Services

Bloomington Decatur Springfield Kankakee Peoria 309-665-0955 217-421-9614 217-547-2884 815-936-8971 309-687-6008

www.soycapitalag.com

x� Estate Planning x� Financial Services x� Ag Project Consultation

Soy Capital Ag Services can help you manage your farmland to achieve your goals. As a farmland owner you receive experienced, reliable, high-quality

services from our staff of farm managers.

Fair Productivity TractsThere were only two sales, both found in Kankakee county. Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcKankakee Feb 118.00 90.0 92.0 5,820Kankakee Feb 95.00 97.0 92.0 4,993Average (acre weighted) 93.1 92.0 5,451

Transitional Property There were three sales of LaSalle county land as potential sand mining they ranged from $14,742 to $21,500 per acre. Demand for silica sand used for fracking will likely be on the decline with lower oil prices. Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcLasalle Feb 160.00 14,742 Lasalle June 107.00 17,500 Lasalle July 48.00 21,500 Average (acre weighted) 16,709 Special Interest Stories A recent interesting sale was that of a 1,062 acre assem-blage of 14 parcels that sold for $8,235 to a local investor. Originally the tracts were bought as a rail/cargo facility and the developer paid over $40,000 per acre in 2006. When Crete would not allow for the zoning change and the economy tanked the developer threw in the towel selling the entire tract for a slight premium over agricultural value.


2683 US 34 | Oswego IL 60543 | 331.999.3490 | landprollc.us

Land ReaL estate BRokeRage

Land auctions

FaRm management

Land consuLting

Doug DeiningerALC | Broker815.439.9245

Chip JohnstonBroker

815.866.6161

Ray BrownfieldALC Advanced AFM

Managing Broker | Owner630.258.4800


Professional Land Real Estate Specialists

hbtAgServices.com 888-897-2276

Increasing yields isn’t the only way to increase profits

Agricultural Services

Farm ManagementFarmland SalesAgricultural Loans

Licensed for Farmland Real Estate Sales


REGI

ON

1

Median Values of Reported Sales by Year and Class, Region 1* - - - - - - - Land Class - - - - - - - Year Excellent Good Average Transitional2001 4,200 3,488 2,210 6,421 2002 4,000 3,500 2,811 22,514 2003 5,261 3,825 3,371 12,487 2004 5,397 4,500 3,700 22,500 2005 6,000 5,325 3,850 19,104 2006 6,883 6,001 4,331 28,194 2007 8,200 5,125 4,663 23,000 2008 7,428 6,700 5,441 20,625 2009 7,350 6,000 5,760 18,001 2010 8,600 5,750 5,000 14,334 2011 9,714 8,650 6,190 14,500 2012 10,429 9,475 7,643 11,250 2013 12,995 9,050 9,250 23,850 2014 12,765 9,003 8,150 18,500 2015 11,550 9,082 7,076 17,500

Continuously Compounded Annual Growth Rate (CCAGR) - selected periods2001-2008 8.15% 9.33% 12.87% 16.67%2008-2015 6.31% 4.34% 3.75% -2.35%2001-2015 7.23% 6.84% 8.31% 7.16%2005-2015 6.55% 5.34% 6.09% -0.88%2010-2015 5.9% 9.1% 6.9% 4.0%2014-2015 -10.0% 0.9% -14.1% -5.6%


Leasing Trends Typical Existing Cash Rental Rates for: Percentages of NEW leases that are: Avg. Most representative Lowest Middle Top Length rate on NEW cash 1/3 1/3 1/3 of Lease lease in area Flexible Farm Classification by rate by rate by rate Contract for 2015 crop year Cash Cash Share Other

Excellent Productivity 275 325 350 1 yr. 300 95 5 275Good Productivity 200 250 275 1 yr. 250 95 5 200Average Productivity 150 200 225 1 yr. 200 100 150Fair Productivity 100 125 150 1 yr. 125 100 100

Lease TrendsCash rental rates declined 10 percent across all soil types in 2015. Lower commodity prices combined with poor yields, often due to too much rain, reduced yields. 2015 may have seen the largest land turnover in recent years as landowners, farmers and lenders could not reach agreement on lease terms. Crop input costs were reduced slightly for fuel, nitrogen, phosphorus and potash fertilizers. Highly leveraged farmers paying premium rents were there first to renegotiate or walk away from leases in early 15. Now 85 percent of Illinois crop acres are covered by crop insurance

and most of that is Revenue Protection that includes both yield and price protection. That insurance combined with government ARC payments for the 2014 crop helped offset lower prices. Corn ARC payments varied across region 1 from a high of 62.07 per acre for DeKalb County to zero for Grundy County. The region has seen an increase in the number of flexible cash rent leases, however no standard version of a flexible lease can be found. Tile drainage or lack thereof had a huge impact on 2015 yields and will af-fect future lease negotiations.


REGI

ON

2

David Dinderman – Co-Chair1st Farm Credit Services, Freeport, IL

Todd Slock – Co-Chair1st Farm Credit Services, Ottawa, IL

Dan Legner, ARA 1st Farm Credit Services, Princeton IL

Justin Levi Martin1st Farm Credit Services, Monmouth, IL

higher interest rates, one would have thought the decline would have been more significant.

Region 2 experienced significant variations in 2015. Those variations ranged from weather, yields, planting and har-vesting times, as well as earnings. Areas that were able to get the crops in early seemed to do very well. Others that had missed the early window were sidelined for a good portion of May because of wet weather, and these areas did not fair as well with crop yields. Lower commodity prices were one of the few things that did remain fairly consistent for 2015. Corn hovered in the $3.50 to $3.80 range for most of the year and only breaking the $4 mark a hand-ful of times. The February crop insurance price was set at $4.15 compared to $4.62 the year before. These varia-tions on the production side caused a lot of volatility in the

Region 2 consists of the northwest 11 counties of Illi-nois. The Mississippi River sets the western boundary,

with the Illinois/Wisconsin boarder setting the northern boundary. It extends to the eastern edge of Bureau, Lee, Ogle and Winnebago counties and the southern edge of Bureau, Henry and Mercer counties. Region 2 is diver-sified from rolling hills and deep prairie soils to sandy river bottom ground scattered throughout the region. This diversification results in a wide range in crops, rents and land values.

The overall farmland market in Region 2 continued the downward trend that occurred in 2014. Surprisingly, the downward pressure eased from an overall decline of 6.43 percent in 2014 to 2.48 percent in 2015. With lower commodity prices, decreased earnings and anticipation of

Region 2 - Northwest



Excellent Productivity $11,000-$13,500 Down 0-5% Steady $300-$425 Down 5-10% $300-$380Good Productivity $8,000-$10,500 Down 0-5% Steady $275-$325 Down 5-10% $250-$3000Average Productivity $6,000-$9,000 Steady Steady $225-$275 Down 5-10% $200-$250Fair Productivity $4,000-$6,000 Down 0-5% Steady $200-$250 Steady $200-$250Recreational Land $3,500-$4,500 Steady Steady


farmland market. Areas throughout Region 2, for similar quality ground, experienced significant differences in price, sometimes ranging a few thousand dollars per acre.

Fall sales prices varied as much as the weather did in the spring. There were multiple counties that had excellent farmland sales in excess of $14,000 per acre. On the other hand, multiple counties had auctions that were “no sales”. The areas with the strong sales on the Excellent quality land seemed to be driven by the same factors as in 2014, cash and/or low debt levels on existing land. The auc-tions that were “no sales” were mostly comprised of Good quality farms on the lower end of the PI range and Average quality farms. Overall, there was a lot of volatility in the market place, and it appears that 2016 will have similar results.

It is risky to try to predict exactly what the land market will do in 2016, but market drivers are pointing in the same direction as last year. Commodity prices are starting the year at a lower level than the year before, the Fed rate was moved 0.25 percent higher in December, and it appears that earnings will continue to recede. If the above mentioned holds true, we will most likely be looking at very similar situation this time next year.

Excellent Productivity TractsExcellent farms are made up of deep prairie soils with a productivity index ranging from 133 to 147. These farms also have minimal waste acres and are easily farmed. We selected 33 sales in the excellent productivity category, representing typical transactions for farmland sales in the 11-county region. The sale prices ranged from $9,000 to $14,400, with a median sale price of $12,000.

Based on the selected sales, the median sale price for 2015 compared to 2014 is down approximately 3.2 percent. A vast majority of the sales were purchased by local farm-ers utilizing returns from past years of strong commodity prices. The supply side of very good to excellent farms in this area remains tight and demand remains strong in spite of current commodity prices, in most areas. Market-ing times for excellent farms has continued to be minimal, specifically in the northern portion of Region 2.

Even with the downturn in the commodity cycle, Region 2 had 12 sales in excess of $13,000 per acre. A very good farm near Mt. Carroll sold at auction in early January of 2016 for $14,400 per acre. The southern portion of Region 2 has been more dovish in comparison. The southern por-tion had five sales in excess of $13,000 per acre and most farms in the $11,000 per acre range.

Overall, Excellent quality farm sales in Region 2 indicated a median value of $88.30 per productivity point, which is down roughly 4 percent from the 2014 level of $92.10 per productivity point. Portions of eastern Carroll, western







REGI

ON

2

point. We also observe that sales of Good farms that had tillable productivity indices over 124 tended to sell better than the Good farms that had a productivity index under 124. Farms that lay out nicely and are easy to farm, tend to be at the upper end of the range as compared to irregu-larly shaped or smaller fields. On these types of farms we are seeing good interest from buyers; however, potential purchasers are being much more cautious and deliberate on which farms they contend for and at what price. Buyers seem much more interested in finding a “good deal” than just purely expanding.

Good farms have shown value resilience despite down-ward pressure from continued, lower commodity prices. Sales prices vary drastically from area to area with the high sale being nearly double the price per acre of the low-est priced good quality farm.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcCarroll Jan 160.15 92.7 129.0 10,053Ogle Nov 79.68 92.0 121.0 8,635Ogle Oct 120.00 87.2 124.0 8,600Stephenson Oct 140.00 85.7 124.0 9,000Stephenson Jul 135.78 83.9 122.0 7,416Ogle Jul 80.00 86.0 119.0 7,297Stephenson Jul 75.22 90.3 130.0 10,500Ogle Jun 60.29 93.3 122.0 7,750Stephenson Jun 134.76 95.5 129.0 11,020Stephenson Apr 153.14 90.8 132.0 13,900Carroll Feb 96.25 85.1 123.0 8,997Mercer Aug 94.95 97.2 128.0 9,400Mercer Aug 45.44 99.8 129.0 8,800Mercer Apr 40.00 91.5 121.0 9,000Rock Island Mar 77.66 84.1 118.0 7,500Mercer Feb 299.16 93.6 130.0 9,600Henry Jan 101.08 92.7 130.0 7,000Henry Feb 123.36 95.3 124.0 9,803Henry Apr 80.00 81.6 120.0 7,600Henry Sep 261.24 88.9 132.0 10,200Henry Oct 40.00 93.8 126.0 8,100Henry Nov 160.00 82.5 125.0 7,250Bureau Jan 68.00 93.9 130.0 8,159Bureau Jan 89.51 84.6 118.0 8,177Bureau Mar 120.00 82.1 119.0 7,500Lee Feb 79.90 93.4 120.0 8,080Lee Feb 79.96 98.0 128.0 8,737Lee Mar 24.38 89.4 125.0 10,300Lee Mar 125.27 90.8 126.0 9,000Lee Mar 160.00 93.4 123.0 7,600Whiteside Mar 37.49 99.5 131.0 9,017Lee Apr 165.56 93.4 123.0 8,402Whiteside Apr 420.74 90.8 123.0 8,297Whiteside May 356.27 93.4 120.0 10,343Whiteside Aug 217.14 90.3 118.0 10,493Lee Oct 33.25 97.8 129.0 9,624Lee Nov 152.52 95.9 131.0 8,000Whiteside Nov 65.56 91.7 123.0 9,500Lee Dec 132.60 94.1 122.0 10,000Average (acre weighted) 90.9 124.8 9,106

Ogle and southwest Stephenson Counties appear to have some of the highest prices paid for Excellent land.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcCarroll Nov 160.00 94.3 141.0 13,500Carroll Sep 39.47 98.6 139.0 13,000Carroll Mar 39.03 90.2 137.0 11,529Carroll Jan 101.92 96.4 139.0 14,400Carroll Aug 125.78 91.0 136.0 13,600Ogle Jan 154.29 91.4 135.0 11,900Ogle Jul 98.07 88.8 137.0 11,000Stephenson Sep 161.69 96.3 134.0 13,550Mercer Nov 75.00 90.8 135.0 10,500Mercer Jul 83.00 98.8 135.0 10,600Mercer Jul 117.67 94.3 143.0 11,000Mercer Jun 58.81 96.5 146.0 13,500Mercer Feb 78.58 96.6 143.0 13,616Henry Jan 80.81 98.1 139.0 10,000Henry Feb 158.79 97.4 142.0 9,500Henry Sep 60.24 98.8 133.0 9,761Henry Sep 104.03 92.6 139.0 12,000Henry Nov 159.02 97.0 142.0 10,900Henry Nov 80.59 95.9 140.0 12,100Henry Nov 138.76 97.8 140.0 11,500Henry Dec 40.00 100.0 140.0 12,000Henry Dec 60.25 94.5 142.0 12,000Bureau Feb 35.00 98.9 143.0 12,000Bureau Jun 63.06 94.5 137.0 9,000Bureau Oct 55.00 98.0 134.0 12,100Whiteside Jan 32.87 95.3 135.0 13,750Lee Jan 40.00 94.7 142.0 11,100Lee Mar 84.76 99.3 135.0 14,400Whiteside Mar 140.00 94.1 133.0 12,779Lee Apr 40.43 96.3 135.0 11,501Lee Apr 112.78 88.6 145.0 12,373Lee Dec 85.00 95.6 140.0 12,235Lee Dec 250.30 97.0 134.0 13,184Average (acre weighted) 95.2 138.3 12,087

Good Productivity TractsGood farms tend to have productive soils with slightly more undulating to rolling land and a productivity index ranging from 117 to 132. These farms can vary in the amount of waste acres, but typically still maintain a high percentage of tillable land. Good productivity farms make up a majority of the farmland in Region 2.

We selected 39 sales, representing typical transactions for farmland sales in our 11-county region. The sale prices ranged from $7000 per acre to $13,900 per acre with a median sale price of $8,800 per acre, based on the sales selected. The median sale price for 2015 compared to 2014 is down slightly about 3.8 percent. A vast majority of the sales were purchased by local farmers.

Investors also seem to favor these good productivity tracts as they typically have strong rental potential. Good qual-ity farm sales in this area indicated a median value of $73.42 per productivity point, which is down less than 2 percent from the 2014 level of $74.83 per productivity


Average Productivity TractsAverage farms tend to fall into two categories: rolling timber soils or sandier soils with a productivity index ranging from 100 to 116. These soils may show evidence of erosion, fertility loss, improper drainage or excessive waste acres. In the northwest portion of Region 2 many of the average farms tend to also include pasture and wooded acres. Buyers in this market seem to heavily discount wooded and pasture ground.

We selected 33 sales representing farmland sales of Aver-age quality in our 11-county region. The sale prices ranged from $4,800 to $9,000 with a median sale price of $7,000. The median sale price increased 4.04 percent from 2014 levels. The slight increase in the value of Average farms seems to be counter-intuitive of the thoughts of most market participants, as farmer buyers have generally paid a premium for excellent to good farms. Average quality farms, by nature, do not always provide as pure an indica-tion as Excellent and Good farms.

Average farms tend to include more non-tillable acres, not be as easily farmed, and can have diminished yield poten-tial above and beyond PI indications. Another factor that contributes to the indicated slight increase in the median sales price is that of all of the land classes, Average qual-ity sales tended to be the most varied and erratic market. Some sales showed surprising strength while in other

areas, Average quality land struggled and resulted in a few “no-sales”. While the statistics indicate a slight increase in the value of Average quality land, “no sales” are hard to account for. The lack of being able to quantify the “no sales” into our measurement results in a slightly optimistic indication for this land class. “No sales” in this area were not frequent, however, it does signal a diminished level of market interest in some lower quality or flawed farms. A disproportionate number of sales, from a strong market area, can also influence increases in results Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcWinnebago Jul 105.00 93.6 113.0 6,750Jo Daviess Jul 47.94 90.4 112.0 7,697Ogle Jun 71.20 84.5 107.0 5,850Stephenson May 45.00 93.6 113.0 8,730Jo Daviess May 143.65 47.4 104.0 4,800Jo Daviess Apr 124.70 68.9 110.0 5,213Stephenson Apr 91.00 80.8 115.0 7,100Ogle Apr 267.47 82.7 114.0 6,178Carroll Mar 87.70 88.7 116.0 8,500Stephenson Mar 53.35 76.6 110.0 7,132Winnebago Jan 75.00 85.0 112.0 6,800Winnebago Jan 74.19 97.8 114.0 7,200Winnebago Jan 121.40 97.9 115.0 8,690Ogle Jan 80.43 74.7 101.0 6,850Mercer Nov 159.00 77.2 104.0 5,100Mercer Nov 75.30 80.7 112.0 6,200Rock Island Apr 78.80 64.1 115.0 5,342Mercer Jan 77.74 66.2 113.0 5,400Henry Oct 80.00 96.3 116.0 6,300Henry Nov 157.02 91.7 113.0 8,999Bureau Feb 40.00 81.0 115.0 7,100Bureau Mar 157.82 88.1 112.0 5,677Bureau Jun 21.78 63.1 101.0 7,576Bureau Jul 76.00 54.6 114.0 6,053Lee Jan 45.00 91.6 111.0 8,750Lee Mar 118.65 84.3 115.0 7,038Lee Apr 148.00 74.0 115.0 6,525Lee Apr 82.00 84.7 111.0 7,000Whiteside May 129.12 85.4 115.0 9,000Whiteside Jul 183.85 99.7 108.0 8,100Whiteside Jul 115.60 71.3 114.0 5,277Lee Aug 58.81 94.9 110.0 7,599Whiteside Dec 80.00 87.0 113.0 8,500Average (acre weighted) 81.9 111.7 6,814

309-944-5601 Geneseo · Fulton · Princeton

www.central bank.com Member FDIC

Serving Generations of Farm Families for Over a Century

Call for a FREE Review

Land Trusts · Executor Services · SEPS & IRAS


REGI

ON

2

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcStephenson Feb 96.38 84.9 99.0 6,474Stephenson Jan 158.25 58.1 88.0 4,900Mercer Aug 49.00 93.5 93.0 4,350Mercer Jan 47.42 83.1 99.0 5,100Lee Apr 34.20 87.0 98.0 4,678Whiteside Apr 32.12 94.6 89.0 4,623Whiteside Nov 43.25 78.9 94.0 5,021Whiteside Nov 80.00 81.0 95.0 7,000Average (acre weighted) 77.3 93.6 5,438

Recreational TractsRecreational tracts seem to be showing a slight increase in value from 2014. The number of recreational sales also ap-pears to be increasing. Recreational tracts in Region 2 had struggled since the economic downturn in 2008 and were one of the hardest hit land segments, aside from transi-tional land. This market relies heavily upon buyers from the eastern portion of the state. Recreational values vary widely depending upon location and attributes.

Sales in Region 2 indicate an average sale price of $4425 per acre and a median sales price of $4613 per acre. The northwestern portion of Jo Daviess County seems to have some of the higher priced sales, which is most likely a reflection of the name recognition of Jo Daviess County by Chicago-land buyers, and its close proximity to the shop-ping and entertainment located in Galena, East Dubuque, Illinois and Dubuque, Iowa.

Fair Productivity TractsFair productivity tracts in this portion of the state tend to fall mostly on the western and northern sides of the region, and exist in two different categories. The northwest portion of the region tends to be rolling and sloping hills of pre-dominately timber soils, which are subject to erosion. The southwest part tends to be a mixture of sandier soils, river bottoms and rolling hills. These soils tend to be be-low Average to Fair soils with productivity indexes below 100, rolling to sloping topography, large amounts of waste acres and are located in areas with diminished access to grain markets and linkage routes. A minimal number of 2014 sales were available in Region 2 that would be clas-sified as Fair productivity tracts. Much of this type of land in the northwest portion had previously been purchased by buyers from the eastern portion of the state for recreational uses and as building sites for weekend homes. These tracts are now marketed with a focus on the agricultural buyer.

Fair quality land has provided a means for smaller opera-tors and beginning farmers to enter the market and/or expand their operation. The sales price indicated a range from $4,350 to $7,000 with a 2015 median sale price of $4,960 which shows a decrease of 6.71 percent. Given the very few sales of Fair quality land, changes in price points are harder to detect. Some farmers are buying these farms at what they feel are very discounted prices and doing significant tree clearing and excavation to improve the ease of farming on some tracts.









Historically, a significant portion of the recreational market has been driven by buyers who plan to build a weekend house on the property along with the use of the land for recreational pursuits. Sales that were purchased at higher values were those tracts that were certified timber, offered exceptional views or are located in the northwest portion of Jo Daviess County. Recreational tracts seem to sell bet-ter via a broker and MLS system than an auction format. Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcJo Daviess Oct 47.30 4,650Jo Daviess Aug 20.00 4,575Ogle Aug 144.10 2,950Stephenson Aug 42.50 4,732Jo Daviess Aug 40.13 4,850Jo Daviess Jun 60.00 4,692Stephenson Jun 30.00 4,069Jo Daviess May 143.70 4,800Ogle Feb 40.30 4,700Stephenson Feb 20.00 6,000Jo Daviess Feb 43.50 4,915Carroll Jan 104.50 3,950Carroll Jan 131.00 3,817Jo Daviess Jan 73.00 3,667Mercer Nov 42.34 0.0 0.0 3,542Lee Jan 202.38 4,840Whiteside Jan 157.39 5.3 86.0 4,448Lee Jan 60.00 56.5 110.0 5,117Whiteside Oct 34.26 42.0 125.0 3,940Lee Apr 38.00 4,211Henry Jan 39.14 34.9 108.0 3,500Henry May 114.81 42.6 105.0 3,702Henry Jul 105.22 14.7 109.0 5,042Bureau May 20.34 5,500Average (acre weighted) 7.7 29.7 4,313

Transitional TractsThis property is in an area of home subdivisions and the tract sold above farmland prices in an area which implied some potential development down the road. Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcRock Island Oct 55.40 53.8 109.0 7,220Average (acre weighted) 53.8 109.0 7,220

Median Values of Reported Sales by Year and Class, Region 1* - - - - - - - Land Class - - - - - - - Year Excellent Good Average Fair Recreational Transitional2001 2,924 2,824 1,901 1,525 2,000 8,811 2002 3,548 3,042 1,873 1,917 2,205 2003 3,889 3,000 2,779 2,218 2,986 6,474 2004 3,856 3,500 1,950 3,013 2005 4,375 4,550 4,025 2,859 3,000 6,000 2006 5,500 3,575 2,938 2,800 3,615 7,455 2007 6,200 5,000 4,250 3,100 4,707 7,571 2008 6,356 5,000 4,779 4,000 5,975 8,457 2009 6,404 5,478 4,339 4,375 4,150 7,500 2010 7,200 6,050 4,592 3,600 4,487 6,177 2011 8,800 7,100 5,725 4,874 4,263 2012 10,900 8,800 6,163 4,675 3,640 2013 13,150 10,000 7,000 5,750 4,213 10,680 2014 12,399 9,148 6,728 5,317 4,484 7,700 2015 12,000 8,800 7,000 4,960 4,613 7,220

Continuously Compounded Annual Growth Rate (CCAGR) - selected periods 2001-08 11.09% 8.16% 13.17% 13.78% 15.63% -0.59%2008-15 9.08% 8.08% 5.45% 3.07% -3.70% -2.26%2001-15 10.09% 8.12% 9.31% 8.42% 5.97% -1.42%2005-15 10.09% 6.60% 5.53% 5.51% 4.30% 1.85%2010-15 10.2% 7.5% 8.4% 6.4% 0.6% 3.1%2014-15 -3.3% -3.9% 4.0% -6.9% 2.8% -6.4%

* (Note: Limited numbers of sales in some years and special features may affect values)

Looking for a Farm Manager,

Rural Appraiser or Agricultural Consultant?

Check out the Membership Directory

section at www.ispfmra.org


REGI

ON

2


Leasing Trends Typical Existing Cash Rental Rates for: Percentages of NEW leases that are: Avg. Most representative Lowest Midde Top Length rate on NEW cash 1/3 1/3 1/3 of Lease lease in area Flexible Farm Classification by rate by rate by rate Contract for 2015 crop year Cash Cash Share Other Excellent Productivity 325 350 375 1-3 Years 300-380 70 29 1 Good Productivity 275 300 325 1-3 Years 250-300 70 29 1 Average Productivity 225 250 275 1-3 Years 200-250 70 29 1 Fair Productivity 200 225 250 1-3 Years 200-250 70 29 1 Recreational Land 25 40 60 1 Year 25-60 Pasture 40 55 70 1-3 Years 60 99 1

Lease TrendsMore landlords and tenants in Region 2 are moving to variable cash rent arrangements. The variable cash rents will deal with how well the farm yields and markets level to determine how much the tenant pays. The northern portion of Region 2 has been slower to convert to variable leases; however their popularity has been slowly increas-ing. As commodity prices have decreased, both landlords and tenants have seen variable leases as a way to maintain a fixed base level with the upside potential to share in the profitability if it occurs.

A vast majority of the rents in the northern portion of Re-gion 2 are still typical cash rents with a length of term from one to three years. Some of the variable rents observed are structured with a base rent plus an additional percentage paid on net or gross income of the farm. One other variable rent observed in this area was structured with a base rent plus a percentage of gross income after the tenant realized a predetermined profit level. Although variable leases can provide the most amicable structure for farm leases, great care must be taken by both the landlord and tenant for detailed guidelines of record keeping, input purchases, and how and when commodity prices are set. Some share crop arrangements still occur in Region 2 but are significantly less common than they once were.



Land auctions

FaRm management

Land consuLting


Chip JohnstonBroker

815.866.6161






REGI

ON

3

Herb Meyer, ARA – Chair1st Farm Credit Services, Edwards, IL

Steven Burrow, AFMSoy Capital Ag Services, Peoria, IL

Charles Cooley II, AFMCooley ii, Knoxville, IL

Dennis Hoyt, AFMFarmers National Company, Quincy, IL

Justin Martin1st Farm Credit Services, Monmouth, IL

Curtis Moffit, ARAFarm Credit Illinois, Pittsville, IL

Jarad Royer1st Farm Credit Services, Macomb, IL

Region 3 is the area between the Mississippi and Illinois Rivers from Knox, Marshall, Stark, Warren and Hender-

son counties across the north side to Pike and Adams counties on the south end of the region. This region is very diverse in terms of having various types of rural properties. The north-ern counties have some of the highest quality farmland in the state of Illinois. This side of the state is also less influenced by urban investors. There are lower quality, and lower priced soils on the more rolling areas that tend to follow the rivers and ditches. The river bottoms along the rivers have soils that range from sand to heavy clays and deep silt soils. The rolling wooded areas provide high levels of outdoor recreation prop-erties across Pike, Adams, Fulton, Knox and Brown counties attract hunting enthusiast from all over the United States.

This region saw large increases in land prices through the fall of 2012. Prices then topped out in the winter of 2012/13

and slowly declined, for the most part, through 2015. Most of the counties in this region record high end prices for farmland sales in 2012 and 2013. The lower volume of quality tillable land for sale demonstrates seller resistance to accepting lower prices. The lower volume of quality land available has limited the opportunities for buyers to obtain the desired land.

Thus, the land prices continued mostly on the slow de-cline until the harvest of 2015. Many successful cash grain farmers are setting on large cash reserves from the past few years. Livestock farmers had a very profitable year again in most of 2015.

There were still several sales over $100 per P.I. point for Excellent productivity tracts and some sales over $14,000 per acre in 2015. The summer months saw little sales

Region 3 - Western



Excellent Productivity $12,000 -10% -20% $400 -6% $375Good Productivity $7,800 0% -10% $350 -7% $325Average Productivity $5,500 0% -10% $250 -10% $225Fair Productivity $4,800 0% 0% $150 -20% $125Recreational Land $3,500 0% 20% $50 0% $50


activity. Sales in the fall of 2015 were very mixed. Some sales continued to show stability in the market, while other sales showed a substantial decrease in value. Location has become more important as buyers are being more selective about which properties to invest in. The bidding was slower at auctions and it was apparent buyers are more hesitant to bid. The occurrence of tracts of land selling for over $100 per P.I. point have decreased through the last couple of years. There are more Excellent farms selling for between $70 and $80 and above since harvest in 2015. This region has also seen the volume of sales decrease this fall when compared to the fall of 2013 and 2014. Overall land prices are under pressure. However, the land buyers, those who truly participate in the farm land market have demonstrated more resilience than the farm Economist and Bloggers may have predicted.

Farm managers indicate that the flexible rent contracts provide some automatic decreases in rent to the landlords. However they also report very small declines in the old-fashioned set-cash rent agreements.

Excellent Productivity Tracts

Excellent Productivity farmland values softened in the fall of 2015. One notable sale was a private treaty spring time sale in Peoria County that brought $17,500 per acre for a farm with an average PI per tillable acre of 140. Fulton County also had a high auction in the spring of 2015. The deeds were recorded with a different division of the land than the configuration at the auction as the true buyer

completed a 1031 Like-Kind Exchange of land. Hancock County still had a $14,700 per acre sale in September 2015. The post-harvest fall auction market was much slower with few sales at lower prices in general.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcAdams May 40.00 100.0 137.0 14,500Adams Sep 85.95 88.4 133.0 6,900Fulton Mar 40.53 98.7 142.0 12,337Fulton Mar 196.42 99.0 142.0 15,273Fulton Nov 82.48 92.4 135.0 8,638Fulton Nov 40.00 97.2 141.0 13,800Hancock Jan 101.56 98.4 133.0 14,600Hancock Jan 95.70 96.3 142.0 12,250Hancock Mar 82.57 97.9 135.0 13,500Hancock Apr 83.37 96.3 144.0 15,000Hancock Jun 79.00 97.7 139.0 10,500Hancock Sep 40.00 98.0 137.0 14,700Hancock Nov 205.00 99.8 133.0 12,000Henderson Feb 79.10 97.9 144.0 13,000Henderson Jul 130.22 87.5 138.0 8,447Henderson Jul 65.00 97.8 133.0 9,500Henderson Nov 80.73 98.7 145.0 12,000Knox Feb 95.55 98.9 142.0 13,265Knox Feb 133.00 98.5 142.0 13,500Knox Aug 400.00 90.3 133.0 10,000Knox Aug 52.33 94.8 140.0 12,501Knox Sep 84.19 97.6 138.0 12,500McDonough Mar 224.78 99.3 142.0 12,000McDonough Apr 131.57 95.0 144.0 13,200McDonough Apr 76.19 96.7 134.0 11,000McDonough Jun 82.00 95.2 133.0 9,410McDonough Jun 41.48 97.9 143.0 13,600McDonough Sep 97.87 98.6 138.0 10,200McDonough Sep 93.28 100.0 136.0 8,900McDonough Nov 128.00 99.2 140.0 12,402McDonough Nov 82.29 98.1 144.0 11,000McDonough Nov 77.69 93.6 140.0 10,450McDonough Nov 167.06 97.6 137.0 11,000McDonough Dec 147.75 97.1 143.0 11,700McDonough Dec 81.93 98.3 142.0 10,300McDonough Dec 48.00 98.3 142.0 10,150McDonough Dec 81.11 94.2 142.0 9,800Peoria Feb 100.00 97.0 139.0 11,100Peoria Apr 82.18 94.3 141.0 12,320Peoria Apr 41.09 95.2 134.0 12,320Peoria Nov 34.00 100.0 142.0 14,005Peoria Nov 59.00 96.6 139.0 13,113Schuyler Nov 82.28 100.0 139.0 11,500Stark Jan 40.00 100.0 144.0 10,800Stark Jan 40.00 97.5 143.0 10,800Stark Jan 120.00 95.3 142.0 10,100Stark Jan 78.00 96.4 139.0 12,100Stark Feb 38.48 96.2 142.0 13,750Stark Feb 237.94 100.0 140.0 13,750Stark Nov 83.86 96.4 140.0 10,100Warren Jan 123.44 97.2 142.0 14,385Warren Feb 122.69 97.0 145.0 14,400Warren Mar 116.62 90.9 140.0 12,400Warren Mar 93.96 91.5 137.0 9,250Warren May 38.32 91.6 138.0 12,631Warren Aug 40.00 97.3 141.0 12,000Warren Dec 90.00 99.0 140.0 11,389Average (acre weighted) 96.4 139.2 11,801


REGI

ON

3

Good Productivity Tracts

The decline in the land market is more recognizable when looking at the Good productivity tracts. These are farms that typically have a lower percent tillable, have some timber soils or have some erodible ground. Again in 2015 we experienced more variability in this category than in the Excellent productivity farms. These farms can be very sensitive to location and features of the farm that slow the expectations of the farming the land.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcAdams Apr 77.01 96.1 132.0 13,600Adams Apr 87.56 81.1 132.0 11,800Adams Aug 78.00 94.0 128.0 8,000Adams Sep 58.20 94.5 127.0 8,500Adams Dec 81.21 91.5 127.0 7,600Adams Apr 108.56 93.0 125.0 11,000Adams Dec 138.64 85.7 121.0 8,500Adams Apr 86.00 71.4 119.0 6,279Adams Nov 75.00 98.6 118.0 8,000Adams Dec 45.79 81.7 117.0 7,300Fulton May 50.00 96.8 130.0 7,500Fulton Jul 80.00 91.3 126.0 9,000Fulton Jul 79.00 65.4 121.0 6,051Fulton Nov 65.50 93.9 120.0 6,200Fulton Nov 50.00 90.8 120.0 8,400Fulton Nov 48.63 73.8 118.0 4,150Fulton Nov 181.33 73.1 117.0 5,950Hancock Nov 42.88 97.4 127.0 7,700Hancock Sep 79.00 99.7 126.0 15,500Hancock Mar 41.15 96.7 122.0 12,000Henderson Mar 238.12 76.5 130.0 7,549Henderson Jan 160.00 91.9 124.0 5,087Henderson Nov 112.74 97.3 119.0 8,020Henderson Jan 85.42 57.4 118.0 4,741Henderson Mar 241.79 90.4 118.0 7,826Henderson Jan 60.48 62.8 117.0 6,296Henderson Feb 276.79 87.8 117.0 7,850Knox Sep 83.00 95.8 131.0 11,700Knox Sep 75.00 63.9 130.0 7,333Knox Jan 84.96 62.3 123.0 5,364Knox Sep 130.28 61.9 121.0 5,968Knox Aug 81.85 53.9 117.0 4,360McDonough Feb 46.76 91.5 132.0 11,500McDonough Apr 72.82 60.8 130.0 7,500McDonough Dec 165.29 83.2 129.0 6,200McDonough Aug 81.86 86.0 127.0 6,600McDonough Feb 60.91 83.4 125.0 8,200McDonough Mar 96.64 78.2 120.0 4,200Peoria Oct 81.83 94.0 129.0 10,002Peoria Jun 80.00 89.4 119.0 7,100Peoria Nov 71.00 62.0 119.0 5,400Peoria Oct 54.00 93.3 118.0 11,000Pike Jan 69.40 93.7 129.0 9,000Pike Jan 93.80 94.9 124.0 10,600Pike Jan 105.78 89.9 124.0 10,500Pike Oct 38.15 68.2 122.0 5,250Pike Jul 123.00 81.3 119.0 5,691Pike Feb 122.00 60.7 118.0 5,041Schuyler Mar 97.40 92.1 132.0 9,600Stark Nov 86.90 94.0 131.0 8,500Stark Nov 59.74 93.1 129.0 8,200Stark Mar 84.50 83.0 122.0 7,250Stark Mar 116.00 88.8 120.0 7,134Stark Feb 70.00 87.1 117.0 7,300Warren Dec 79.45 90.6 132.0 10,000Warren Dec 75.98 90.9 130.0 8,050Warren Jan 238.07 88.0 129.0 7,665Warren Nov 139.28 78.8 128.0 7,550Warren Dec 52.02 95.8 125.0 9,800Warren Mar 49.54 82.8 124.0 6,200Warren Nov 299.06 79.3 124.0 7,100Average (acre weighted) 83.5 123.8 7,735









Average Productivity TractsThese properties consists mostly of timber soils, with a lower percent tillable than the Excellent or Good tracts. As budgets tighten for cash grain producers, buyers are becoming more selective about the real estate they purchase. This has caused the more significant appearing decrease in Average quality land. This is the practical low end of the market for cropland outside of the river bottoms in the region. Most of the inferior Fair Quality farms will be found in the Recreational category. Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcAdams Mar 79.53 88.0 116.0 8,200Adams Mar 59.00 96.6 115.0 8,800Adams Jun 46.21 99.5 113.0 10,400Adams Jan 158.14 75.9 108.0 5,700Adams Oct 79.00 58.2 107.0 5,700Adams Aug 126.00 77.8 106.0 5,700Adams Oct 126.00 83.6 100.0 6,000Fulton Sep 58.38 91.5 114.0 7,100Fulton Nov 79.67 85.2 113.0 4,800Fulton Jun 297.00 52.9 112.0 4,549Fulton Nov 30.14 85.9 103.0 4,600Hancock Nov 80.05 78.6 116.0 4,400Hancock Mar 78.40 82.5 110.0 4,600Hancock Feb 116.00 87.2 109.0 7,198Hancock May 80.00 69.5 106.0 5,313Hancock Dec 26.57 89.6 105.0 4,000Hancock May 37.62 75.5 103.0 6,446Hancock Dec 41.65 64.4 101.0 3,300Henderson Apr 51.27 54.0 108.0 4,486Henderson Jun 104.09 96.0 108.0 5,092Knox Jun 166.86 88.8 115.0 7,450Knox May 185.17 93.8 111.0 6,616McDonough Dec 151.00 75.4 114.0 4,967McDonough Sep 49.69 75.1 111.0 3,600Peoria Jul 37.07 67.3 116.0 5,100Peoria Feb 117.00 59.8 112.0 5,557Pike Jun 35.27 93.8 113.0 6,890Pike Nov 156.00 66.0 111.0 4,679Pike Jan 323.24 62.2 110.0 4,059Schuyler Dec 115.00 70.1 115.0 4,500Stark Mar 121.00 64.0 111.0 5,579Stark Jun 149.00 79.5 111.0 5,000Stark Dec 151.30 66.5 110.0 4,699Warren Nov 26.31 62.3 112.0 4,941Warren Dec 78.98 69.6 108.0 4,300Warren Dec 67.58 66.4 106.0 4,600Warren Mar 80.56 60.2 105.0 4,000Average (acre weighted) 73.9 110.2 5,379

Fair Productivity TractsThis region has very few fair productivity tracts. This part of Illinois has a strong recreational market and there are still many livestock producers when compared to other parts of the state. This fact leads to the poorer quality farms remain-ing in pasture or woods Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcAdams Nov 48.48 80.4 99.0 9,724McDonough Feb 38.15 62.9 97.0 4,250Hancock Jan 104.98 77.3 93.0 3,600Hancock Mar 40.84 59.5 92.0 2,575Average (acre weighted) 72.4 94.7 4,804

Recreational TractsThe recreational market continues to try to show signs of recovery after the financial crisis of 2008. The average per acre price increased slightly from last year. The volume of sales appears to be up as well. It appears that recreational buyers are feeling better about the economy and looking to spend some discretionary income on recreational ground. The strip-mined land with substantial mine lakes in Fulton showed significant market strength in 2015.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcWarren May 40.00 97.5 0.0 2,945Warren Sep 36.65 0.0 0.0 3,247Warren Apr 53.81 28.4 107.0 3,336Warren Feb 62.50 13.6 114.0 3,040Pike Jun 81.00 49.3 96.0 4,630Peoria Apr 51.00 29.8 126.0 5,098Marshall Jan 78.01 0.0 0.0 3,400Marshall Feb 62.77 37.8 114.0 4,222Knox Feb 233.60 30.0 99.0 3,200Knox Jan 54.49 36.0 113.0 3,872Knox Aug 37.41 26.7 115.0 4,300Knox Oct 42.00 38.1 115.0 4,700Knox Apr 80.00 29.6 115.0 4,188Henderson May 100.00 48.7 106.0 5,000Henderson Oct 79.96 28.2 107.0 4,450Hancock Dec 50.51 0.0 0.0 1,925Hancock Dec 41.78 47.1 103.0 2,950Fulton Feb 20.26 0.0 0.0 3,801Fulton Feb 207.75 0.0 0.0 3,249Fulton Apr 255.40 0.0 0.0 2,801Fulton Sep 135.00 0.0 0.0 3,167Fulton Oct 217.24 0.0 0.0 3,001Fulton Dec 16.00 0.0 0.0 3,438Fulton Nov 164.96 32.2 105.0 2,375Fulton Feb 59.70 43.6 115.0 4,100Fulton Apr 120.00 32.1 116.0 3,750Fulton Aug 521.00 25.0 116.0 3,987Fulton Feb 1000.00 11.0 120.0 3,431Fulton Feb 56.19 23.8 119.0 3,900Fulton Feb 67.14 31.9 118.0 4,100Adams Jul 108.39 59.0 96.0 4,200Average (acre weighted) 84.4 3,542


REGI

ON

3

River Bottom TractsInterest rate increases have been a subject of discussions over the past several years. The Fed just raised target short term rates by 25 basis points. Some analysts are question-ing the wisdom of that increase. The low interest rates still provide incentive for investors to seek out alternative invest-ments other that bank savings. Grain prices have declined and are applying downward pressure the sale prices of all farmland. The farmland market has become very LOCAL. The areas with few sales over the past year or two tend to be holding on to value better than neighborhoods where several farms have sold. The neighborhoods with a lot of land sales are showing weakness. The main reasons for expecting declines in farm land values are the fear of increasing inter-est rates and a high production cost with the normal yield grain prices. Grain prices have dropped dramatically since the highs in the middle of 2012 into the fall of 2015. Crop production input cost have begun to decline as of the end of 2015. Farm manages indicate that the flexible rent contracts provide some automatic decreases in rent to the landlords. However they also report very small declines in the old-fashioned set cash rent agreements. Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcFulton May 238.00 76.5 108.0 6,517Adams Mar 371.00 96.5 100.0 6,900Fulton May 447.00 69.8 113.0 4,474Adams Mar 254.00 72.4 100.0 4,094Average (acre weighted) 79.1 105.9 5,459

Region 3. Average Sales Price of Completed Sales in Region by Year and Category*

--- Category --- Year Excellent Good Average Recreational2001 3,051 2,293 1,628 1,534 2002 3,315 2,587 1,991 1,509 2003 3,325 2,521 2,186 1,553 2004 4,600 4,147 2,991 2,148 2005 4,597 3,035 2,517 2,840 2006 4,556 3,380 3,179 2,534 2007 5,621 4,269 3,154 2008 7,034 5,087 4,145 3,619 2009 6,959 5,019 3,454 3,085 2010 7,388 5,469 3,506 2,487 2011 10,101 7,633 4,833 2,813 2012 11,780 7,340 5,209 3,241 2013 13,693 9,492 6,912 3,405 2014 13,724 8,008 5,511 3,293 2015 11,860 7,922 5,484 3,671 Continuously Compounded Annual Growth Rate (CCAGR) - selected periods

2001-2008 11.93% 11.38% 13.36% 12.26%2008-2015 7.46% 6.33% 4.00% 0.20%2001-2015 9.70% 8.86% 8.68% 6.23%2005-2015 9.48% 9.59% 7.79% 2.57%2010-2015 9.5% 7.4% 8.9% 7.8%2014-2015 -14.6% -1.1% -0.5% 10.9%*Note: Limited numbers of sales in some years & special features may affect values



Excellent Productivity 175-275 275-375 375-425 1 375 20 50 30 Good Productivity 175-250 225-325 350-375 1 350 20 50 30 Average Productivity 125-175 175-225 225-275 1 225 20 50 30 Fair Productivity 75-125 125-175 175-225 1 175 25 50 25 Recreational Land 25-40 40-60 60-100 1 50 100 0 0 Pasture 1


REGI

ON

4

David Klein, AFM, ALC – ChairSoy Capital Ag Services, Bloomington, IL

Rob Brines1st Farm Credit Services, Normal, IL

Doug HensleyGorsuch-Hensley Real Estate, Canton, IL

Chad Hoke, AFMSoy Capital Ag Services, Bloomington, IL

Chuck Knudson, ARA, RPRA1st Farm Credit Services, Normal, IL

Kevin Meiss, AFMSoy Capital Ag Services, Bloomington, IL

John Moss, AFMLoranda Group, Bloomington, IL

Dan Patten, AFM, CCASoy Capital Ag Services, Bloomington, IL

Ross Perkins Soy Capital Ag Services, Bloomington, IL

Region Four holds a variety of soils, crops, and loca-tion influences, which can lead to great ranges in value

from one end of the region to the other. There was large drop in values in the first half of 2015 but only a few per-cent thereafter. The northern portion of Marshall, Putnam and Livingston Counties have been heavily influenced by the 1031 tax-deferred exchange buyers coming from the collar counties of Region 1 in the past. Though the number of 1031 tax-deferred exchanges continues to be low, the impact of “reinvestment dollars” from prior deals remains evident throughout the region. As a result, parcels of land purchased by 1031 exchange dollars in the mid 2000’s continue to provide liquidity to the area’s farmland sup-

ply. Larger communities such as Bloomington, Morton, and Pekin have some impact on values in the center of the region. The southwestern portion of the region continues to be most influenced by the general agricultural economy and has continued to be very tightly held. Specialty crops and seed production are important to this area, generally being a positive impact on farmland values when the opportuni-ties exist. The entire region benefits from excellent grain market outlets as the Illinois River and rail terminals influ-ence the northern and western portions of the area while ethanol and soy processing plants are located throughout the region. End-users like ADM, Cargill, Solae and Aven-tine all exist in Region 4.

Region 4 - North Central

Land Value and Cash Rent Trends Overall Summary


Excellent Productivity $11,000-$12,000 Down 8% Similar $320 -6% $300Good Productivity $8,500-$10,000 Down 5% Similar $265 -8% $245Average Productivity $5,000-$7,500 Down 15% Similar $160 -6% $150Fair Productivity Insufficient Data Insufficient data Recreational Land $3,500-$5,500 Similar Up 40% Transitional Tracts Insufficient Data Insufficient data Other Sales (describe) $8,500-$13,500 Down 10% Up 35%


actions occurred in the final quarter of the calendar year during November and December. As grain lingers at lower prices, and land values soften, some owners decided it was their time to exit the market. In some cases, charitable trusts were forced to sell portions of their assets to meet the cash distribution requirements relative to asset values. Similar to the previous years, there continued to be a very wide range of values across the region. This was especially true for the “good productivity” soils where the location factor came into play as two neighbors were willing to dual it out. Tracts of 80 to 160 acres almost seemed to sell at a premium, as the optimal size for most buyers.

The aesthetics of a farm still seemed to be adding a bigger premium or bigger discount to land, especially if sold by auction method. Rectangular fields with no waterways or cut-outs and good or excellent soil productivity saw higher prices as compared to fields containing characteristics that would slow down today’s large, modern, equipment. The areas having transitional land, and the values associated that reflect any change, have continued to shrink back to land adjacent to existing development. As cash flow started to tighten up, farmers were less eager to sign new leases for 2016 at the same rates as years prior. Rents have trended downward but not as significantly as commodity prices. A fair number of cash rents have de-creased by 10 percent to 15 percent, and more operators are giving up ground for 2016 compared to 2015. As of now,

Wind energy is another contributing factor to Region 4. It is said that some of the “best wind” at 50-80 meters high exist in this region of the state. These wind turbines provide ar-eas of Livingston, McLean, Tazewell, and Woodford coun-ties with income diversification, beyond agriculture, which makes these tracts more attracting to an outside investor. Additional projects are still being discussed by developers, but have been met with some local opposition.

Supply of farmland was relatively tight throughout 2015 until post-harvest, when availability started to increase at auctions in November and December. This led to the oc-casional disappointment of some sellers in the values they were able to achieve by this sale method. With the Federal Reserve opting to increase interest rates, consistently lower commodity prices, and tightening farmer cash flows, land values continued to soften throughout 2015. Still, investors find farmland to be an attractive portion to their portfolio as the world continues its population increase and need for food. Also, as oil prices retreat consumers will drive more, thus increasing the total gallons of ethanol needed for gasoline.

Activity varied by county in Region 4. Marshall, Putnam, Tazewell and Mason Counties all saw slightly lower levels of land offered for sale during 2015, while Livingston, McLean and Woodford counties all had a steady number of sales when compared to 2014. In general, offerings were met with adequate demand. Most of the farmland trans-

Partner with a team whose roots run deep.

Our Ag Services professionals can help you—from appraisals and consultations to production

management and conservation practices—as well as with your borrowing needs for operating,

land and equipment loans.

Busey Farm Brokerage is also well established as a respected and successful real estate

company specializing in the sale of Illinois farmland. Our licensed brokers and sales

representatives offer more than 75 years of combined experience.

Busey. Your Dream. Our Promise.

With offices in Champaign, Decatur and LeRoy

busey.com 309.962.2311

We’ll help you maximize the yield on your investment.

Member FDIC


REGI

ON

4

it is evident that lower grain prices are taking a toll on the agriculture industry from operators to landlords to major companies. Input prices have reduced some, and helped improve net farm incomes. In order to keep cash rental rates stable moving forward, it is critical to maintain good production and decrease input costs.

Excellent Productivity TractsExcellent productivity farmland in Region 4 continued to sell throughout 2015 in a more defined range than in 2014. While no new highs were set, Tazewell, Marshall, McLean and Woodford counties continued to see very strong sale prices of bare farmland. The highest quality land with good drainage, easily farmable shape and high percent-age tillable, consistently brought the most money per acre. Farms with waterways, open ditches, house site cut-outs or odd field shapes all continued to see discounts. Inven-tory levels of these top quality farms were very similar to the previous two years. The majority of excellent quality farms in this region were selling for $80-90 per P.I. point per tillable acre throughout most of 2015. This region ex-perienced a majority of its farmland transactions as being 40-160 acres in size which commanded a premium on the market. Small to moderate tract size offerings led to well attended auctions by both farmers and investors, causing ample amounts of competition for Region 4. Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/Ac Tazewell Jan 80.00 98.1 140.6 11,350 Tazewell Jan 40.00 94.3 140.2 13,500

McLean Jan 144.04 95.5 134.2 11,500 McLean Jan 156.10 99.9 134.9 11,748 Tazewell Feb 80.00 98.0 140.0 11,350 McLean Feb 40.83 100.0 134.8 11,450 McLean Feb 79.77 100.0 140.2 12,000 McLean Feb 60.18 93.7 132.7 10,718 McLean Mar 80.02 99.1 138.9 11,600 McLean Mar 45.30 86.0 139.6 11,250 Tazewell Mar 40.00 95.0 142.1 11,500 McLean Apr 80.42 97.3 140.6 12,600 McLean Apr 80.00 93.5 133.9 10,300 McLean Apr 715.00 98.8 135.3 11,608 Tazewell May 30.00 96.6 140.0 11,352 McLean May 160.00 99.8 133.7 10,800 Marshall Jun 85.31 97.5 136.1 10,500 Woodford Jun 131.83 100.0 142.0 13,000 Livingston Jun 40.00 91.4 138.1 11,000 McLean Jun 83.61 99.0 138.7 11,300 McLean Jun 75.00 97.3 138.3 10,000 Marshall Jul 80.00 97.2 139.0 9,500 McLean Jul 40.00 99.7 138.5 10,000 McLean Jul 951.19 98.8 135.9 11,300 McLean Sep 25.67 92.6 134.4 10,000 Woodford Oct 80.00 98.9 141.7 11,000 Marshall Oct 80.00 100.6 138.9 12,700 McLean Oct 66.66 97.2 140.1 11,300 Tazewell Nov 306.50 99.0 142.0 11,158 Woodford Nov 40.00 100.0 139.9 12,600 McLean Nov 321.91 99.4 136.0 11,200 McLean Nov 82.81 96.1 139.6 14,900 McLean Nov 119.58 93.2 136.4 8,300 McLean Nov 48.91 98.3 134.0 9,500 McLean Nov 159.21 99.0 138.8 11,650 Woodford Dec 61.27 99.9 141.9 15,200 McLean Dec 101.08 95.5 136.1 10,300 McLean Dec 40.40 99.9 142.4 10,841 McLean Dec 51.81 96.8 138.0 10,750 McLean Dec 80.00 89.7 141.7 11,250 McLean Dec 50.00 89.2 133.3 10,900 Woodford Dec 87.83 100.0 139.7 11,200 Woodford Dec 82.27 99.0 139.3 11,000 Average (acre weighted) 98.0% 137.4 11,345

Good Productivity TractsA large percentage of the farms throughout Region 4 are comprised of Good soils. While this land class will typical-ly respond well to high management, these properties often have some less attractive feature such as a lower percentage of tillable acres, more slope, or slightly tighter subsoil’s than the Excellent soil quality farms. We found this land class had a similar supply in 2015, and while it was met with adequate demand, through most of the year, there were occasions where both farmers and investors would show lack of interest in less desirable tracts at auctions, or listed farms. As a result of these characteristics, this land class generated a wider range of values across Region 4. The typical price paid per soil productivity index per tillable acre fell slightly to a range of $60-$70. The highest prices paid for this land class in 2015 occurred at auctions where location was the biggest factor and two or more parties were willing to pay premiums for the acquisition. More surprising prices were noticed between the higher produc-









tive soils with a higher percentage tillable versus the farms in this class at the lower end of the soil productivity range, odd field shapes and lower percentage of tillable acres. Prices tend to fall harder for lower quality land in respect to top quality land, but multiple factors still affected values in this range throughout 2015.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcLivingston Jan 244.87 93.8 127.7 8,541 Mason Jan 35.00 93.0 131.0 9,500 Livingston Jan 79.18 81.6 126.8 10,002 Livingston Jan 138.97 92.8 117.3 8,100 McLean Feb 160.00 97.0 128.4 9,813 McLean Feb 198.05 99.2 131.2 10,603 Livingston Mar 83.00 99.6 126.6 9,200 McLean Mar 46.19 86.6 131.6 10,000 Livingston Apr 117.22 97.1 130.7 9,250 Livingston Apr 140.00 92.6 119.8 9,250 McLean May 94.73 89.4 129.1 9,500 Livingston Jul 96.46 94.6 125.7 8,300 McLean Jul 376.13 88.8 128.5 9,172 Marshall Aug 190.16 99.9 132.2 10,200 McLean Oct 218.48 86.4 127.5 10,400 Marshall Nov 120.00 98.7 131.7 10,100 McLean Nov 83.87 97.1 127.3 8,900 Woodford Nov 77.58 96.2 128.7 10,250 Livingston Nov 80.00 95.2 128.2 8,150 Mason Nov 35.00 99.0 121.0 8,857 McLean Dec 41.00 95.7 130.7 7,853 Average (acre weighted) 93.6 127.8 9,419


REGI

ON

4

Average Productivity TractsVery few acres of Region 4 are in this land class. Most of these soils are found along the Illinois River area in Putnam, Woodford, Tazewell and Mason County or north of Pontiac in Livingston County. This land class has two classes within itself - irrigated, and non-irrigated. Most “dry land” sales occurred in the $5,000-$7,500 per acre range. Higher priced sales in this land class are typically found on the sandier soils throughout Tazewell and Ma-son counties, with center pivot irrigation. However, there were no arm’s length transactions of irrigated land found in 2015. The majority of land sales in this class sold in the $40 to $60 per P.I. point range during 2015. There was limited supply, and while farmers would make land in this class of soils bring respectable prices, there certainly was a preference by buyers for higher quality land. Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcLivingston Jan 113.06 95.2 116.1 5,550 Livingston Jan 79.11 100.0 113.5 9,000 Tazewell Mar 74.21 99.2 115.6 5,406 Tazewell Mar 41.00 97.6 102.3 5,512 Livingston May 153.96 90.9 108.6 7,321 Livingston Jul 80.00 97.0 109 7,100 Putnam Sep 20.08 87.2 114.3 4,481 McLean Dec 76.55 98.4 115.5 6,650 Livingston Dec 160.00 95.2 113.7 5,700 Livingston Dec 60.00 89.3 106.3 4,300 McLean Dec 70.03 93.3 115.1 6,782 Average (acre weighted) 95.0 112.2 6,364

Recreational TractsQuite a few more recreational tracts sold during 2015 as compared to 2014. This was met with steady demand as recreational land continues to be seen correlating more with the general economy as opposed to the agricultural economy. Some strength exists where the relative proxim-ity to Bloomington, Morton or Peoria is just a short drive away. Tract size is important in this category as larger tracts require more funds than many recreational buyers can afford. In addition, enhancing the potential use to be-coming a residential site, or potential dividends paid from gravel pits, affects the values paid for this land class. In general, recreational land values remained steady through-out 2015 Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcMason Jan 80.00 23.0 86.0 3,100Marshall Feb 67.40 57.9 117.0 4,080Woodford Mar 192.00 50.3 114.5 4,250Woodford Mar 19.83 0.0 74.3 4,050Woodford Mar 20.67 0.0 62.9 4,900Putnam Apr 119.25 59.7 101.0 4,157Mason Apr 20.00 0.0 0.0 4,600Marshall Jul 117.90 68.9 124.6 5,173McLean Aug 80.00 0.0 111.7 4,402McLean Aug 185.34 0.0 104.7 4,402Putnam Sep 40.05 51.8 100.2 4,494Putnam Sep 91.40 50.9 113.5 3,450McLean Dec 247.49 45.3 133.9 5,050Average (acre weighted) 37.9 110.9 4,395

1401 Koester Drive, Suite 100Forsyth, IL 62535

PH: 217-876-7700 FX: 217-876-7724

[email protected]

The Real Value is in

Our Service.

LEARN MORE about our people, capabilities, and, most importantly, the value we can bring you.

www.HeartlandAgGroup.com

AT HEARTLAND AG GROUP LTD., our experience in agriculture makes your investments more valuable and our services invaluable. Our services include:


Median Values of Reported Sales by Year and Class, Region 4* - - - - - - - Land Class - - - - - - - Year Excellent Good Average Recreational 2001 3,337 2,800 2,225 2,224 2002 3,440 2,975 2,240 2,100 2003 3,750 3,387 2,588 1,779 2004 4,438 3,525 2,650 4,319 2005 4,257 4,050 4,245 2006 5,000 4,297 2,925 3,638 2007 6,400 5,000 4,013 3,939 2008 6,800 5,400 4,225 4,244 2009 6,550 5,575 4,949 4,700 2010 7,010 6,595 5,000 4,348 2011 10,341 9,163 6,950 3,563 2012 11,700 9,000 6,000 5,000 2013 12,500 9,543 9,000 5,000 2014 12,750 9,875 7,000 5,088 2015 11,250 9,250 5,700 4,402 Continuously Compounded Annual Growth Rate (CCAGR) - selected periods2001-2008 10.17% 9.38% 9.16% 9.23%2008-2015 7.19% 7.69% 4.28% 0.52%2001-2015 8.68% 8.54% 6.72% 4.88%2005-2015 9.72% 8.26% 0.36%2010-2015 9.5% 6.8% 2.6% 0.2%2014-2015 -12.5% -6.5% -20.5% -14.5%* (Note: Limited numbers of sales in some years and special features may affect values)

Other Tracts – Wind TurbineSupply of farms with wind turbines was higher in 2015 than 2014. Most tracts were sold at auction. The turbines added a premium to the per acre price when compared to the tracts without turbines. All but two of the farms were sold via auction method. In general, we observed that investors are still paying a little more of a premium for the wind turbines just as they had in the past few years. We have found over time that the percentage premium buyers are willing to pay for turbines correlates to the number of years remaining on the wind turbine contracts. We look at that as a discounted cash flow valuation which considers both the amount of the payment and the duration of the re-maining payments. This kept values of high quality farm-land with turbines higher, but these tracts also followed the same trend as the high quality, unimproved land.

P/I on Total Sale Total % Tillable # ofCounty Date Acres Tillable acres $/Acre TurbinesMcLean Jan 100.00 97.2 137.5 13,100 1 McLean Feb 60.00 92.6 137.3 11,300 1 McLean Apr 77.26 92.0 141.4 12,200 1 Livingston Nov 91.33 98.5 117.3 8,800 1 McLean Nov 158.45 95.5 135.8 11,600 1 McLean Nov 145.18 96.1 130.3 11,600 1 Woodford Dec 158.61 97.0 129.1 8,450 1 Woodford Dec 75.38 99.8 124.7 8,450 1 Average (acre weighted) 96.3 131.5 10,660 Special Interest Stories

There were quite a few interesting sales that took place in 2015. It seemed as if it were the year for large tracts to enter the marketplace. The Elizabeth Mathers farm was 715 acres offered in two tracts, with a house and machin-ery shed on the property. This farm sold in the spring for $11,600 per acre. Over the summer, the Fleming family decided to part ways with their century-held 951 acre farm for $11,300 per acre. A grain storage facility and multiple machinery sheds were located on the property and in-cluded in the sale. Both of these large tracts were privately listed and were purchased by different outside institutional type investors.

Up for auction in November was the Ken Smith Estate. Ken was said to be somewhat of a collector of land, and had acquired in excess of 1,500 acres throughout McLean, Woodford, and Livingston Counties. Prior to the sale, a couple tracts were privately sold or deeded to beneficiaries. A total of 14 tracts were sold at the auction with farmers being the majority of the buyers and oth-ers being local investors. Altogether the land averaged around $10,050 per acre. The last sale to note was a golf course situated on 142 acres in Woodford County, offered as 3 tracts, bought buy one buyer for an average price of $6,800 per acre. That land is now being cleared with an estimated cost of $500-$1,000 per acre to return it to agriculture practices.


REGI

ON

4



Land auctions

FaRm management

Land consuLting


Chip JohnstonBroker

815.866.6161







hbtAgServices.com888-897-2276




Excellent Productivity 250 300 360 1 year 300 50 30 10 250Good Productivity 175 225 300 1 year 245 60 25 10 175Average Productivity 125 150 175* 1 year 150 125Fair Productivity 1 year

Lease TrendsStraight cash rent leases dominate Region 4. With lower grain prices, operators and landlords have been more willing to discuss alternative types of lease structures for farms. Most com-monly used is a lower base rent combined with a certain percent-age of the crop’s pro-ceeds to calculate the variable component. Some leases include the components of crop insurance proceeds and government payments and some do not. The general consensus is that this lease structure could be more useful in the future.

Other variable leases exist that have a starting rent based upon the farm’s federal crop insurance guarantee and then flex upward. These are somewhat more complicated than many landowner-tenant relationships can comprehend, but are a very effective way to accurately distribute actual returns between landowner and farm tenant. Our recom-mendation is that you contact an accredited member of the ISPFMRA in this region to discuss any specific farm situ-ation. Each landowner’s specific goals and objectives can best be met with a tailored farm management plan for their property.

*Some average productivity land, where seed corn or spe-cialty crops are grown, and irrigation exists, have generated very high rental rates on good and average soils in this re-gion. However, the majority of land in this region is opera-tor owned or crop-share leased, where seed corn production or specialty crops are raised. As a result, these leases can

skew this productivity class because the soils in this class, without irrigation, would not be able to consistently generate the production revenue to sustain this rental rate. With the irrigation, however, higher rental rates are able to be paid and average substantially more rent per acre, comparable to the excellent productivity soils levels.

13343 Fitschen Rd Athens, Il 62613 [email protected]


REGI

ON

5

Mac Boyd, ARA, ALC Farmers National Co., Arcola, IL

Laura EngerFarm Credit Illinois, Mahomet, IL

Russell Hiatt, AFM, ARAFarmers National Co., Danville, IL

Cory KauffmanFirst Mid-Illinois Bank & Trust, Mattoon, IL

Brian Neville, AFMFarmers National Co., Danville, IL

Winnie Stortzum, ARA, ALC Farmers National Co., Arcola, IL

Brian Waibel, AFMWaibel Farmland Services, Mahomet, IL

The land market for 2015 in Region 5 started the year in a sideways-to-down movement from year-end 2014.

With slightly declining prices from 2014, it was more of the same in the first half of 2015. However, many areas were still experiencing some sales in similar ranges as the higher 2014 sales. The market was a little more volatile than 2014, but it was still moving down slowly overall. Buyers were beginning to talk about land values moving lower, but there were buyers who still felt that land was a sound investment and continued to buy at strong prices.

Farms with the same soil types and productivity were selling at very different prices, depending on the method of how the farm was sold, and the location of the land was located within the whole Region. Farmers became more cautious buyers as commodity prices continued to go lower through

the year. Absentee owners and investors came back to the land market as other competitive investments produced poorer income alternatives for cash and poor returns for the overall more liquid assets. The volatile stock market was making investors look around for more secure assets to purchase. For the second year in a row, a very large potential corn and soybean crop in much of this region, as well as in other regions of the Cornbelt, produced a lot of speculation for big commodity surpluses and carry-overs.

Commodity prices did move down in the last third of the year, causing farm income projections to move lower as a result. There was speculation from potential buyers that it would continue on down during the last quarter of 2015. By the end of the year, the land market was a little uncertain. Some buyers were still willing to pay very strong prices for

Region 5 - Eastern



Excellent Productivity $9,500- $13,000 Down 5-10% Steady to up slightly $340 -10% $330Good Productivity $7,000-$10,000 Down 10-20% Steady to up slightly $300 -10% $290Average Productivity $5,600-$8,200 Down 10-15% Steady to up slightly $250 -10% $240Fair Productivity $4,000-$6,000 Down 10-15% Steady $210 -10% $200Recreational Land $2,500-$6,000 Down 10-15% Steady to up slightly Transition Tracts Not enough data Not enough data Not enough data Not enough data Not enough data Not enough dataOther Sales (describe) Not enough data Not enough data Not enough data Not enough data Not enough data Not enough data


land purchases. However, in other areas, some counties had received too much rain and lower yields were anticipated. In these areas land prices were dropping as much as 10 percent to 15 percent, or more, because of the effect on farm in-comes and economic expectations in those areas.

Cash rents were also experiencing some downward pres-sures as the commodity prices drifted lower and farm incomes were projected accordingly. While 2014 had cash rent figures above $350 to $360 per acre, many farm oper-ators were beginning to negotiate to get cash rents lowered for the next lease year. While there were still individuals out there being very competitive with cash rents, more cash rent rates were moving to flexible cash rent leases. Operators were trying to obtain some insurances that they would not have to deal with low farm income and cash rents that were still too high to be paid.

Many farms were being sold privately by sellers who thought that the higher farm prices were getting away from them. In many cases, the prices negotiated were lower than the farms that were being sold by professional real estate brokers. The income expectations had removed some of the intense competition from the market. In addition, the number of farms being offered during the last third of the year was increasing. Many farms that were sold publicly, were still selling for fairly strong prices, but poorer quality farms and farms that sold privately tended to be selling at lower prices than the professionally-sold farms.

As the year drew to a close, farms were still selling well, if they were professionally represented and advertised in the market, but they were down a little in sales prices from 10 percent to 12 percent from the 2014 year end. As has been the case in previous years, land auctions were still bringing the highest sales prices. Sales completed by landowners who sold their farms privately, tended to be some of the lower priced sales in Region 5.

Estates and multi-owner sellers still offered up the larg-est number of farms for sale in Region 5. Many of these landowners had been watching the land market, trying to decide the best time to sell their land. Cash rents, which had been relatively high for several years, were starting to get lots of negotiating to move them lower. As these land-owners were evaluating the potential land price declines, many made the decisions to not take any more risks and just sell their farms. Farmers were generally not sellers in this market in 2015, but many did purchase farms that they could buy “at the right price”.

Land prices stayed relative strong by 2015 year end, with only a small 5 to 12 percent reduction in sales prices recorded. High crop yields also helped farmers make the decision to purchase land as this Region had very strong yields in the 2015 crop year. Commodity prices were down some, but the strong corn and soybean yields made up for those lower prices with more grain to sell, and resulted in higher incomes. There were individual areas in Region 5



Land auctions

FaRm management

Land consuLting


Chip JohnstonBroker

815.866.6161






REGI

ON

5

which were hurt with too much rainfall and flooding, but a large percentage of the area had a very large crop to mar-ket at the prices that were available.

Differences in individual farm costs structures and farm business management practices were the deciding factors by individual farmers in the level of cash rent that they were willing to pay. Those operators who always attempt to maintain control of their farming base, were very ag-gressive as they bid for cash rents at the end of 2014 for the 2015 crop year. However, when negotiating 2016 cash rent leases during the last quarter of 2015, farmers became more negative of 2016 farm income expectations. Our committee found that on currently-negotiated 2016 cash rent leases, the cash rent lease payments have been lowered by around 10 percent. In addition, members reported more leases chang-ing to flexible cash rent leases. This resulted in 10 percent to 15 percent more flexible cash rent leases being reported for Region 5 by our team of managers. Flexible cash rent leases can result in less risk for the farmer. They are often preferred in times where potential low farm incomes, coupled with guaranteed high cash rent payments, put more risk on each individual farmer. This is because cash rent payments in a straight cash rent lease have a high guaranteed minimum cash payment to the landowner.

Excellent Productivity Tracts Excellent quality land showed strength with buyers rec-ognizing the impact on yield and profit on average soils

and below. Sales values appeared to be about 5 percent off from prior year on excellent quality and 10 percent off on good to average soils. Below average soils experienced the largest decline of roughly 15 percent compared to the previous year. Leasing trends are responsive to the recent commodity prices. Although demand remains high opera-tors are focused on the breakeven point and are not willing to take on as much risk. Leasing for 2016 appears to have very tight margins.

Buyers have become very selective. Location and quality of land are king. Buyers are still willing to pay up for tracts with minimal blemishes and in good location, but discounts are often significant on tracts with problems. The buyer pool is much shallower than it was a couple years ago.

Sales prices for these types of properties were generally in the $9,500 to $13,000 per acre price range, although there are some scattered sales above and below that range. This price range was down only slightly from 2014 levels on the low end of the range, and even a little stronger on some of the sales on the high side, for counties in Region 5 in 2015. As a whole, land prices have declined by 5 percent to 10 percent from 2014 levels. The most noticeable trend was that the higher sales were somewhat higher than 2014 levels in the early part of 2015, but the sales prices were not bid up as high as the year progressed later into the fall and winter. The total number of 2015 transactions in this category were reported to be similar to greater than the numbers of sales recorded in 2014.

HELPING FARM FAMILIES SUCCEED TODAY AND TOMORROW

Serving the southern 60 counties in Illinois www.farmcreditIL.com

Mahomet • [email protected]

Paris • 217.465.7605 [email protected]

Watseka • 815.432.5431 [email protected]

Laura EngerAppraiser

Paul MeharryAppraiser


Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcChampaign Jan 66.31 100.0 142.0 11,500Champaign Jan 40.00 90.0 143.5 12,125Champaign Jan 90.90 95.0 141.0 11,000Champaign Jan 40.00 96.0 139.8 14,250Champaign Jan 37.20 97.0 143.7 12,400Champaign Feb 68.46 92.8 143.3 11,500Champaign Feb 77.02 93.7 141.4 12,900Champaign Feb 20.09 100.0 142.9 10,996Champaign Feb 99.56 98.5 142.9 12,400Champaign Feb 94.00 98.7 142.0 11,500Champaign Mar 45.00 100.0 140.0 9,250Champaign Mar 168.95 99.0 141.9 9,900Champaign Apr 77.87 100.0 142.7 12,200Champaign Apr 26.60 98.9 143.2 11,200Champaign Apr 40.00 99.0 140.5 11,200Champaign Apr 46.00 93.9 141.2 11,200Champaign Apr 68.25 97.9 140.5 10,500Champaign May 40.00 98.0 134.7 9,000Champaign May 69.00 97.5 142.2 12,500Champaign Aug 100.00 96.4 143.1 11,950Champaign Aug 60.30 99.0 143.7 11,000Champaign Sep 45.00 97.8 143.7 13,333Champaign Sep 28.00 97.9 137.6 12,142Champaign Sep 40.00 96.8 138.5 10,900Champaign Sep 36.58 94.9 135.3 11,298Champaign Sep 120.00 96.8 133.3 11,906Champaign Oct 74.54 99.1 143.6 11,516Champaign Oct 37.50 98.1 142.8 11,525Champaign Oct 52.09 94.8 143.1 11,250Champaign Oct 120.00 98.7 135.8 11,143Champaign Nov 155.38 98.0 133.7 11,263Champaign Nov 80.00 99.0 143.3 11,400Champaign Nov 59.56 96.7 143.8 11,500Champaign Nov 99.93 95.6 143.7 12,707Champaign Nov 60.00 99.0 139.2 11,500Champaign Nov 20.00 99.0 133.9 11,500Champaign Nov 51.00 97.1 136.0 11,100Champaign Dec 81.61 98.8 143.7 12,000Champaign Dec 98.87 97.0 139.4 11,635Champaign Dec 160.00 96.1 138.5 11,699Champaign Dec 160.00 94.5 142.4 8,965Champaign Dec 120.00 99.0 142.5 11,750Champaign Dec 77.00 99.4 143.3 11,500Coles Feb 124.00 97.8 140.1 12,250Coles Feb 60.00 98.6 136.6 11,484Coles Feb 81.85 99.2 135.4 11,553Coles Mar 162.44 95.6 140.4 12,503Coles Apr 166.39 97.4 135.2 9,616Coles Jun 160.00 81.7 139.0 10,625Coles Aug 80.00 97.0 140.9 14,400Coles Sep 66.66 92.2 139.4 12,646Coles Sep 312.65 99.6 139.7 12,500Coles Oct 117.65 97.9 133.4 12,430Coles Nov 140.00 98.3 140.4 12,500Champaign Nov 51.90 95.4 134.4 11,100Coles Dec 154.65 99.5 140.1 12,000Coles Dec 565.51 98.1 138.7 11,504Coles Dec 33.37 100.0 138.4 9,900Coles Dec 80.52 100.0 138.6 11,525Coles Dec 58.00 85.7 135.8 9,800Coles Dec 40.00 100.0 139.4 10,565Douglas Feb 85.00 97.6 138.0 12,920Douglas Feb 40.00 100.0 142.0 12,087Douglas Feb 99.00 100.0 137.4 9,690Douglas Feb 37.49 100.0 135.4 11,319Douglas Mar 46.60 100.0 142.5 10,000

Douglas Apr 58.28 100.0 138.0 11,000Douglas Apr 195.60 99.0 137.6 10,690Douglas May 76.22 96.4 140.7 10,000Douglas Aug 120.00 98.8 140.7 10,200Douglas Sep 331.44 98.0 138.7 11,110Douglas Oct 169.25 99.9 139.4 11,000Douglas Nov 155.25 100.0 140.0 13,905Douglas Nov 158.00 97.0 140.3 13,663Douglas Nov 40.00 100.0 133.0 11,000Douglas Nov 77.95 98.0 139.2 11,250Edgar Jan 82.57 100.0 142.6 7,637Edgar Jan 25.77 100.0 136.9 11,000Edgar Feb 185.00 99.6 142.7 10,946Edgar Apr 80.00 100.0 134.7 8,888Edgar Jun 147.56 100.0 143.6 10,241Edgar Jun 68.88 100.0 143.6 10,000Edgar Oct 40.90 100.0 133.3 9,169Edgar Dec 118.64 99.0 143.0 10,833Edgar Dec 316.94 99.0 141.1 10,500Edgar Dec 82.16 100.0 138.8 11,000Edgar Dec 40.38 100.0 142.8 9,905Ford Mar 40.00 100.0 135.9 9,400Ford Apr 223.21 96.9 133.6 12,000Ford May 103.00 91.0 143.8 13,000Ford Nov 314.20 96.1 138.4 11,000Ford Nov 297.85 96.4 142.0 11,000Ford Dec 78.46 96.4 136.0 10,500Ford Dec 117.00 95.3 138.7 10,600Ford Dec 160.00 96.5 141.4 11,050Iroquois Feb 79.07 98.0 135.5 12,835Vermilion Jan 113.46 99.0 142.3 11,100Vermilion Apr 180.00 100.0 135.6 10,500Vermilion Sep 86.00 96.0 141.2 11,000Vermilion Nov 163.20 100.0 139.6 9,000Average (acre weighted) 97.6 139.6 11,276


REGI

ON

5

Good Productivity Tracts Properties rated in the Good Category of productivity generally sold in the $7,000 to $10,000 per acre price range in 2015. Investors generally find these types of properties attractive for many reasons. First, a larger number of acres can be acquired in a purchase than can generally be acquired with the more expensive excellent-category farm proper-ties. In addition, because of the lower per-acre sales prices, higher returns can be anticipated. This is due to the larger total farm size that can be purchased. Often the yields of this land quality are nearly the same as in the excellent category properties. Many investors and farmers seek this kind of productivity when excellent-category properties are not available, or when the price difference significantly widens between good and excellent-classified farms.

Buyers were aggressive for farms in the good category in 2015, and prices were strong throughout the year. The overall selling price range was nearly as strong as the reported 2014 figures. However, our farm managers and appraisers who were collecting the data, felt that sales prices were down 5 percent to 10 percent in this category, which may be a reflection of sales in the last few months of 2015, when some tracts began experiencing somewhat lower sales prices. These sales prices also varied strongly in this Region, according to the individual farm and the counties or areas in which they were located. This is because of the differences in the counties and the general variability and location of soils in the seven counties within the region.

Our Ag Services professionals can help you—from appraisals and consultations to production

management and conservation practices—as well as with your borrowing needs for operating,

land and equipment loans.

Busey Farm Brokerage is also well established as a respected and successful real estate

company specializing in the sale of Illinois farmland. Our licensed brokers and sales

representatives offer more than 75 years of combined experience.



busey.com 7. 5 . 7


Member FDIC


Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcChampaign Jan 40.00 95.0 131.5 9,925Champaign Jan 40.00 89.8 128.3 8,375Champaign Feb 37.00 98.9 131.6 9,925Champaign Feb 40.00 88.5 120.5 7,118Champaign Feb 33.03 97.0 130.3 8,200Champaign Mar 18.91 96.8 118.7 7,850Champaign Mar 29.78 98.7 123.2 7,910Champaign Mar 40.00 98.4 120.8 9,810Champaign Apr 99.13 100.0 132.3 20,176Champaign May 45.00 96.2 121.8 10,304Champaign Jun 31.00 99.0 118.6 8,500Champaign Oct 47.75 92.1 117.0 8,450Champaign Oct 177.97 68.8 122.2 9,271Champaign Nov 70.93 99.3 129.6 10,000Coles Feb 82.23 99.0 132.4 11,005Coles Oct 20.00 79.5 123.6 7,000Coles Nov 77.78 68.9 119.2 6,158Douglas Mar 77.47 100.0 129.5 10,072Douglas Jun 37.01 99.0 122.3 8,105Douglas July 240.00 100.0 130.5 10,800Douglas Oct 398.10 99.6 130.3 9,600Douglas Nov 95.00 99.3 127.7 9,200Edgar Jan 20.67 100.0 122.6 4,744Edgar Mar 40.00 99.0 126.1 8,747Edgar Mar 183.15 96.0 125.4 8,110Edgar Dec 767.24 78.7 132.6 6,582Ford Jan 80.00 99.9 132.9 10,250Ford Feb 80.00 86.9 123.5 6,200Ford Feb 648.82 97.1 126.0 10,700Ford Feb 114.72 95.6 126.5 8,850Ford Feb 318.10 95.0 130.0 10,500Ford Mar 60.00 99.3 118.1 8,000


Ford Mar 82.74 98.9 121.2 8,000Ford Mar 60.00 99.3 122.3 8,500Ford Aug 447.84 98.4 119.6 8,000Ford Aug 118.95 100.0 120.6 9,200Ford Aug 35.74 100.0 121.7 9,000Ford Aug 160.00 98.6 121.9 8,900Ford Oct 157.35 78.2 121.7 6,168Ford Nov 136.00 100.0 121.3 7,233Ford Nov 60.00 99.5 121.7 7,100Ford Nov 156.00 94.8 123.1 6,733Ford Nov 80.00 97.0 123.2 6,710Ford Nov 80.00 100.0 126.6 7,600Ford Dec 78.75 88.8 123.6 7,350Iroquois Jan 170.00 97.9 122.1 8,000Iroquois Jan 64.00 99.0 131.8 8,830Iroquois Jan 78.00 97.2 130.0 11,250Iroquois Jan 40.00 98.0 127.5 10,000Iroquois Jan 77.41 97.5 127.5 8,802Iroquois Jan 77.83 99.1 121.5 8,994Iroquois Feb 40.00 98.3 119.6 10,000Iroquois Feb 88.56 97.6 127.7 7,904Iroquois Mar 106.79 97.0 128.3 5,619Iroquois Mar 38.97 97.8 123.4 5,000Iroquois Apr 77.15 99.0 125.4 10,629Iroquois Apr 80.00 99.0 125.7 9,500Iroquois Apr 80.00 98.0 128.5 9,200Iroquois Apr 34.00 94.4 124.3 9,192Iroquois Apr 40.00 98.8 119.7 7,250Iroquois May 39.33 99.0 129.4 9,975Iroquois May 25.00 98.8 127.3 13,950Iroquois May 78.83 99.3 122.0 8,500Iroquois May 63.08 98.6 124.0 8,200Iroquois July 80.00 97.0 125.2 10,000Iroquois July 78.54 97.3 124.5 9,725Iroquois July 80.00 88.6 128.1 9,419Iroquois Aug 59.00 99.0 126.2 9,049Iroquois Aug 39.33 98.1 126.2 9,682Iroquois Aug 40.00 96.0 128.9 10,306Iroquois Aug 40.00 96.0 127.6 9,700Iroquois Aug 58.52 98.3 123.9 8,880Iroquois Aug 39.80 99.0 119.0 8,040Iroquois Oct 60.00 98.0 126.7 8,350Iroquois Oct 74.15 96.2 123.9 10,115Vermilion Jan 40.00 100.0 126.2 9,000Vermilion Feb 72.33 43.0 121.7 4,285Vermilion Mar 60.39 93.0 120.6 7,000Vermilion Apr 160.00 94.0 118.4 7,425Vermilion Sep 77.33 98.0 120.5 8,893Vermilion Oct 155.92 99.0 130.3 8,750Vermilion Oct 78.56 98.0 127.2 7,194Vermilion Nov 80.18 100.0 128.9 7,550Vermilion Nov 105.00 98.0 125.9 7,000Vermilion Nov 122.00 89.0 125.6 5,800Vermilion Nov 20.25 89.0 129.3 8,200Vermilion Nov 80.00 99.0 131.0 7,770Vermilion Nov 122.37 94.0 118.9 8,000Average (acre weighted) 94.1 125.8 8,662

Average Productivity TractsSales prices of farms with average quality productivity generally ranged from $5,600 to $8,200 per acre. Most of these sales occurred in the outlying areas of the Re-gion. Buyers of these properties were more likely to be neighboring and retired farmers. However, because of the limited availability of the top-quality farms, and the higher


PH: 217-876-7700 FX: 217-876-7724

[email protected]


Our Service.




LAND AUCTIONS

When the time

comes to sell your

most valuable assets,

trust the experts.

Trust Murray Wise

Associates.

MurrayWiseAssociates.com

FARMLAND TRANSACTION EXPERTS

A Land Report National Top Auction Company

217.398.6400


REGI

ON

5

prices paid in this quality of land, investors and buyers were active in this category as well. As the availability of top-quality properties decreases, the activity in all of the other land categories increases.

There was a short supply of these average quality proper-ties that were sold in 2015. This result is due to the fact that there are fewer average-quality properties in Region 5 com-pared to the much greater quantities of good-to-excellent quality land. The prices paid for average-quality sales show minimal change in 2015. In fact, prices paid were nearly the same range as reported in 2014. However, fewer sales can cause greater variances in the land values reported, since there are so few sales to report in this land category. There was just not enough data to give the market a sound analy-sis and therefore, valid conclusions are harder to develop because of that lack of data. It does make it more difficult to draw meaningful conclusions for these average-quality farms because of the lack of comparable sales and the lesser amount of this land quality in this whole Region.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcColes Nov 80.00 94.6 115.8 8,400Coles Nov 38.55 65.0 109.2 3,600Ford Jan 154.86 97.0 116.4 8,105Ford Jun 30.00 100.0 116.8 8,388Ford Jul 238.00 91.2 111.9 6,996Ford Aug 164.40 94.0 105.9 7,000Ford Aug 307.60 83.0 107.7 4,600Ford Aug 276.87 91.4 107.8 5,487



hbtAgServices.com888-897-2276


Ford Nov 71.74 80.6 105.8 5,700Ford Nov 158.26 101.1 116.0 7,192Ford Nov 200.00 92.3 116.0 6,553Ford Nov 291.50 96.1 110.7 6,365Ford Dec 149.88 92.2 112.6 5,201Ford Dec 162.35 93.3 115.5 7,250Iroquois Jan 58.89 97.8 119.2 7,500Iroquois Jan 119.56 94.0 119.1 9,250Iroquois Jan 194.15 96.7 116.4 7,726Iroquois Mar 77.54 98.4 117.0 7,738Iroquois Mar 170.00 98.2 109.7 7,700Iroquois Mar 39.96 91.8 115.7 7,007Iroquois Apr 53.96 87.0 120.0 7,427Iroquois Apr 80.00 96.5 116.1 9,875Iroquois Apr 45.00 97.8 114.4 9,000Iroquois Apr 20.00 98.0 105.9 7,000Iroquois Jun 78.66 93.8 118.6 7,600Iroquois Jul 70.31 97.0 116.7 7,999Iroquois Oct 20.00 78.0 120.2 6,750Iroquois Nov 80.00 99.0 115.4 8,600Iroquois Nov 117.59 95.5 108.8 7,700Vermilion Oct 60.00 77.0 112.1 5,400Average (acre weighted) 92.9 112.8 6,904

Fair Productivity Tracts

There is very little land of this quality in the region. With only three sales reported, it is impossible to accurately analyze data for fair-rated farms in Region 5. Sales prices reported in this category were in the $4,000 to $6,000 per acre price range. There was a wide divergence of sales prices paid, and it is difficult to generalize from the few sales that were recorded.


For a complete list of First Mid locations, visit us online.

FIRSTMID.COM

At Home in the Heartland.Since 1865, First Mid has been connected to the Illinois soil and the people who farm it. Whether you need a loan for this year’s crop or help shaping the legacy you will leave to future generations, we have the services - and the experience - to help you do it right.

*Insurance services are not deposits or obligations of the bank, are not insured by the FDIC or any governmental agency, and are not guaranteed.

Champaign County:Champaign 359-9837Urbana 367-8451Mahomet 318-3750

First Mid Ag Services

Ag Lending including beginning farm programs through USDA Farm Service Agency & Illinois Finance Authority

Crop Insurance - offered through Strategic Farm Marketing

Farm Estate & Business Planning

Farm Management

Real Estate Appraisals

Douglas County:Tuscola 253-3344Arcola 268-5700

Coles County:Mattoon 258-0454Charleston 345-3977

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcEdgar Feb 11.39 99.0 107.3 6,760Edgar Dec 16.98 100.0 115.6 4,105Ford Aug 6.00 100.0 93.8 5,530Average (acre weighted) 99.7 109.0 5,234

Recreational TractsDemand for recreational properties (woodland, ponds, creeks, rivers, rolling topography, etc.) continued to be slow in 2015 because of the slower economy, and the lack of dis-cretionary income among buyers. When funds are tighter, people don’t have the excess funds available for these types of properties. There were only a few sales of recreational properties reported in Region 5 in 2015. The general supply of this type of property is low in this region, because most of the acreage is in production agriculture, producing corn and soybeans. These tracts are found in the more remote areas of Region 5, so it makes it difficult to analyze the market for these types of properties. Prices can vary greatly depending on the motivations and knowledge of buyers and sellers.

Emotional reasons, rather than strictly earnings or produc-tion reasons, coupled with a buyer’s financial position and their motivation, create the varied prices paid in the mar-ketplace. The economy is still the major factor in reducing the demand for these kinds of properties. While the desire

to purchase recreational land is still there, economic factors have generally kept many of these buyers out of the recre-ational market in recent years. However, the prices paid for sales in this category improved in 2015. These sales were reported in the $2,500 to $6,000 per acre price range. Prices do still vary dramatically in these sales for such factors as location, scenic features, access, and the potential buyer’s discretionary funds available to make this kind of purchase. Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcChampaign Jun 73.43 24.4 125.8 6,128Champaign Jul 21.90 0.0 0.0 4,100Coles Oct 40.00 22.4 114.4 5,100Coles Nov 150.00 33.6 125.9 3,500Coles Nov 25.00 71.6 130.9 3,500Coles Dec 73.50 0.0 0.0 3,162Edgar Apr 76.88 0.0 3,200Edgar Jul 40.95 0.0 2,784Edgar Oct 114.59 26.0 115.3 2,578Edgar Dec 40.24 20.0 115.2 2,398Iroquois Apr 40.10 0.0 0.0 3,163Average (acre weighted) 19.1 77.3 3,542

Transitional Tracts

Headline: 3/15 – 12.68 acres $23,000 north of Dairy

Queen in Tuscola near Route 36

In March, 2015, a 12.68-acre farm laying just north of Dairy Queen in Tuscola was purchased for $23,000 per


REGI

ON

5

Region 5. Average Sales Price of Completed Sales in Region by Year and Category* --- Category --- Year Excellent Good Average Recreational Transitional2001 3,048 2,720 2,110 3,594 2002 3,578 2,465 2,017 1,475 2003 3,472 2,787 2,123 1,403 5,970 2004 4,473 3,318 2,189 2,112 8,279 2005 4,588 3,815 2,883 2,108 6,319 2006 4,784 3,582 2,820 2,525 6,887 2007 5,116 4,066 3,537 3,450 11,489 2008 6,044 4,738 4,163 3,579 12,619 2009 5,939 4,969 4,258 2,673 10,796 2010 6,840 5,554 4,767 2,817 10,605 2011 8,602 6,878 5,316 4,247 2012 10,023 8,106 5,746 3,806 2013 11,527 9,156 7,019 3,128 7,500 2014 11,349 9,100 7,553 4,113 36,125 2015 11,258 8,657 7,170 3,601 20,169 Continuously Compounded Annual Growth Rate (CCAGR) - selected periods2001-2008 9.78% 7.93% 9.71% 17.94%2008-2015 8.89% 8.61% 7.77% 0.09% 6.70%2001-2015 9.33% 8.27% 8.74% 12.32%2005-2015 8.98% 8.19% 9.11% 5.36% 11.61%2010-2015 10.0% 8.9% 8.2% 4.9% 12.9%2014-2015 -0.8% -5.0% -5.2% -13.3% -58.3%* (Note: Limited numbers of sales in some years and special features may affect values)

acre. It is located in a commercial development area, next to the outlet mall and north of Route 36. Whether it is to be developed immediately or held for future development was not disclosed.

There were also a couple of sales of development proper-ties in the Champaign area at $24,243 and $13,263. The $24,243 sale was located near the I-57/Curtis Road area. No information was reported on the final transaction.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcChampaign Jun 92.40 99.1 140.1 24,243Champaign Dec 26.39 0.0 0.0 13,263Douglas Mar 12.68 100.0 142.1 23,000Average (acre weighted) 79.3 112.2 21,919

Other CommentsLease terms are spread across the various rental arrange-ments. There are lots of straight cash rent leases, some flexible cash rent leases, and still some older crop share rent leases. Some of these crop share leases also have a supplemental cash payment included with them. The other categories are custom farming leases and there is a fair amount of seed production agreements. Cash rent pay-ments have come down a little this year, with all categories of cash rents a little lower than last year. These rents are only down about 10 percent from last year, but remain very strong in this region.

Special Interest Stories

In September 2015, Rockome Gardens, a commercial attraction in rural Douglas County for over 50 years, was sold to a local businessman, James Aikman, for a drive-through wildlife animal park. The 38.6 acres of real estate sold for $13,131 per acre. This sale included buildings, many of which were older. The personal property was priced separately and was sold through local and internet marketing.

Initially, the developer had an option on some farmland very near the Arthur Pumpkin Patch in order to coordinate marketing and drive-by traffic to the animal park. Howev-

er, the local community there did not support the idea and Aikman was not able to gain the county permits required. Residents in the Rockome Gardens area were used to the traffic this commercial site received and were much more receptive to the idea. The park opened in the fall of 2015, but it was too late in the year to gain much attention. At this time there are camels, antelopes, zebras, ostriches, emus, deer, alpaca, elk, and similar animals. Aikman hopes that public support through donations and animal “adop-tions” will help fund the project. Their website is: www.aikmanwildlife.com.










REGI

ON

5


Excellent Productivity 300 325 350 1 year 325 30 40 25 5Good Productivity 255 285 325 1 year 285 30 35 30 5Average Productivity 230 245 275 1 year 245 30 35 30 5Fair Productivity 200 210 225 1 year 230 50 10 30 10

Lease TrendsReturns to market value under pressure with current rent rates resulting in ROI’s lowering by a quarter to one-half percent. Operators are stronger negotiators than in recent years with more use of flex provisions to mitigate risk. Top quality soils are still seeing heavy demand with the lessor soils under pressure. The high fixed cost of inputs seems to be carrying weight as operators consider the yield potential on excellent soils compared to average soils. Farmers are becoming more cautious and seeking lower rents, but rumors abound of continued high cash rents and farmers that have been turned down by the bank, though it is difficult to know what is true in every case

13343 Fitschen Rd Athens, Il 62613 [email protected]

www.WaibelFarmlandServices.com

303 E. Main St., Unit CP.O. Box 1188Mahomet, IL 61853

(217) 590-0233

Brian D. WaibelAccredited Farm Manager (AFM)Real Estate Managing Broker

WAIBELDirection for Your Farm

BrokerageManagement

Appraisals

FARMLAND SERVICES INC.SM






Bruce Huber, AFM, ARA - ChairHickory Point Bank Ag Services, Decatur, IL

Jeremy CrouchHeartland Ag Services, Forsyth, IL

Thomas CoursonBusey Farm Brokerage, Decatur, IL

Paul MeharrySoy Capital Ag Services, Mahomet, IL

David RaganFarm Credit Illinois, Effingham, IL

John Wall, GCREAHertz Farm Management, Monticello, IL

Keith Waterman, AFMSoy Capital Ag Services, Springfield, IL

Justin WheelerSoy Capital Ag Services, Decatur, IL

Region 6 consists of seven counties located in Central Illinois. Macon County is in the center of this area and

is surrounded by Logan, Dewitt, Piatt, Moultrie, Shelby and Christian Counties. While all of the counties have high quality land, Shelby County tends to have more sales of lower quality land than the other counties. This is due to the fact that the southern half of Shelby county is south of the Shelbyville Moraine, which is a remnant of the Wis-consin glacier. The following are some of our summary observations for 2015:

• Production--Two back-to-back record-breaking produc-tion years have placed downward pressure on commodi-ty markets. Yields this past year surprised many and corn and soybean prices have been on the defensive since harvest. These lower prices have farmers tightening their

belts and farmers are reluctant to pay the higher rental rates of prior years.

• Sales--There were more farms sold by auction than in prior years. At one point, in the November/December time frame of 2015, there were over 10,000 acres being advertised for auction in Central Illinois. This was over twice the amount from the prior year.

• Excellent Quality Farms hold their value--With 10,000 acres selling at auction many would think that the farm-land market might slide lower as supply could have out-paced demand. However, excellent quality farmland sold well. The prices received were well within the expected price range for any given tract.

• Private Sales--Sales of land by private treaty took longer to complete than in prior years. What may have taken 1 to 2 months to accomplish in 2014 is taking 6 to 8

Region 6 - Central



Excellent Productivity $11,000-$13,000 -6% Steady to Up $300-$400 (5-10%) $300-$350Good Productivity $8,500-$11,000 -3% Steady to Up $225-$350 (5-10%) $200-$300Average Productivity $6,000-$7,650 Stable Steady to Up $180-$300 (5-10%) $180-$275Fair Productivity $5,000 -$6,500 Stable Steady to Up Recreational Land $3,000- $6,000 16% Steady to Up Transitional Tracts $10,000-$25,000 5% Steady to Up


REGI

ON

6

months to accomplish in 2015. Buyers are much more cautious and are reluctant to pay up to purchase a prop-erty via private treaty.

• Buyers of Farmland---Farmers are still the dominant buyer of farmland, followed by individual investors, and some corporate investors.

• Discretionary Income---Recreational sales seem to be picking up steam as the general economy improves. This is evident by the 15+ percentage increase in recreational land values.

• Drainage---As with last year drainage has a significant impact on land values. Poorly drained farms sell for significantly less than well drained farms. This along with increased production has spurred the installation of pattern tile systems in central Illinois.

• Location--Like 2014, location played significant role in price. Properties located near strong buyers of farmland sell for noticeably more money.

• Future Net Income---Incomes for 2016 are projected to lower than 2015, which continues the trend from the prior year, and put downward pressure on land values.

Excellent Productivity TractsOur committee selected 46 sales in the “Excellent” category. These sales ranged from $10,100 per acre to $13,500 per acre. The average size of each parcel was 110 acres. The average percentage tillable was 96.2 percent with an average Soil Productivity Index Rating (PI) of 140.1. The average price per acre was $11,702 and the price per tillable PI was

$86.82. This compares to last year’s average price of $12,402 per acre and a price per tillable PI of $90.45. This data in-dicates a decline of 5.6 percent over the prior year’s results. Surprisingly, the average sale price per acre was the same for the 4th quarter of 2015 as it was for all of 2015. However, the sale price range during the 4th quarter of the year was much narrower at $ 11,000 per acre to $12,600 per acre. It is the committee’s opinion that values in the “Excellent” Category were down between 5 and 6 percent from 2014 to 2015. We believe this to be consistent to other areas within Illinois.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcMacon May 164.11 99.6 141.3 11,750Macon Nov 82.40 98.3 140.0 11,000Macon Mar 74.50 100.0 140.7 12,081Macon Jun 40.00 96.9 143.0 11,500Macon Jan 160.00 99.3 139.2 12,250Macon Feb 77.93 97.9 137.6 11,500Macon Dec 33.34 98.2 140.2 11,500Macon Sep 41.33 98.0 141.1 12,000Macon Jun 81.47 100.0 138.6 11,750Macon Dec 76.61 100.0 142.7 11,900Christian Nov 40.00 97.4 142.9 12,500Christian Mar 203.65 97.7 140.1 13,500Christian Oct 46.74 100.0 142.5 12,000Christian Nov 80.00 99.7 134.5 12,600Christian Feb 105.00 97.4 141.5 13,085Christian Jan 328.36 97.8 142.7 13,248Christian Mar 80.00 98.0 141.3 12,688

Busey promises solutions for all your farm management needs. With over 100,000 acres under

management and more than 75 years of combined agri business experience, our professiona s are committed to serving your unique needs.

Our Ag Services and Farm Brokerage teams will analyze and recommend options to make the most

of your efforts. From appraisa s and consu tations to production management and business ending services, e i provide so utions designed speci ca y for you.



busey.com 7. 5. 75


Member FDIC



Christian Mar 203.65 98.4 141.4 13,500Christian Mar 60.00 99.3 141.8 13,400Christian Oct 41.86 96.5 142.3 12,500DeWitt Jul 40.00 100.0 142.0 12,500DeWitt Oct 96.78 100.0 136.2 11,996DeWitt Jan 162.82 93.3 138.9 12,330DeWitt Mar 244.78 97.8 140.2 10,800DeWitt Dec 40.00 98.0 137.7 11,500DeWitt Jan 80.00 100.0 140.5 12,500Logan Sep 100.00 90.9 142.0 10,550Logan Dec 80.00 98.4 142.3 11,800Logan Dec 444.59 97.7 140.2 11,000Logan Mar 284.80 99.3 138.1 10,117Logan Mar 115.70 98.5 139.4 11,627Moultrie Feb 80.00 99.0 138.8 11,250Moultrie Jan 195.00 98.1 136.5 11,300Moultrie May 40.00 100 140.7 11,500Moultrie Dec 78.62 98.8 140.6 11,000Moultrie Sep 75.02 100 139.4 12,596Piatt Jul 115.00 97.0 140.6 10,900Piatt Jul 80.00 95.9 139.0 10,225Piatt Oct 255.00 91.8 140.9 11,765Piatt Feb 60.00 97.8 142.0 12,000Piatt Nov 40.70 99.2 141.6 11,204Piatt Sep 93.00 95.3 135.9 11,000Shelby Feb 40.00 99.8 144.0 12,000Shelby Feb 99.28 94.9 144.0 10,250Shelby Jun 80.00 99.7 144.0 10,250Shelby Nov 40.00 100.3 134.2 11,500Shelby Nov 40.00 95.6 144.0 11,000Shelby Nov 154.22 99.9 136.6 10,100Average (acre weighted) 97.8 140.1 11,702

Good Productivity TractsThe committee selected 16 sales for the “Good” Category. The average size of the sales selected was 75.3 acres. The average percent tillable was only slightly less than the Excellent category at 94.5 percent. The average PI of the sales in this category is 124.2. The sales selected ranged in value from $7,200 per acre to $11,000 per acre with an average of $9,267 per acre. The average dollar value indi-cated for the tillable land was $79.37 per PI point. The av-erage price in this category in 2014 was $9,546 indicating a decline of 2.9 percent. While the average is down, year over year, the price throughout the year remained remark-ably stable. There is a considerable difference in value when comparing acre-weighted to unweighted averages in this case, perhaps reflecting simple sample variation, or a preponderance of larger tracts with higher premiums. For comparison, the simple averages are also provided to show the impact of variation within this category. The average sale price in the 4th quarter of the year was nearly identical to the average for the entire year. Again, like in the “Ex-cellent” Category, the real difference is that the range in sale prices is much narrower in the 4th quarter ($8,500 to $11,000 per acre).

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcChristian Nov 100.00 92.5 127.2 9,500Christian Jul 78.00 98.5 119.2 10,000Christian Jun 40.00 99.0 123.1 8,750Christian Jan 87.00 97.8 120.3 8,528DeWitt Feb 18.64 96.2 124.5 8,500DeWitt Oct 121.13 97.0 131.6 9,150Logan Jul 81.11 94.6 130.9 8,877Logan Dec 80.08 92.6 128.6 9,350Logan Nov 80.58 87.4 123.4 9,625Macon Mar 50.00 66.5 128.3 7,200Moultrie Oct 39.78 99.7 129.7 11,000Piatt May 37.00 97.1 124.3 8,500Piatt May 37.00 97.0 124.3 8,500Shelby Nov 120.00 99.5 120.6 9,400Shelby Sep 40.00 99.3 120.1 8,800Shelby Apr 195.12 97.4 118.5 9,900Average (acre weighted) 94.9 124.2 9,267Average (unweighted) 94.5 124.7 9,099









REGI

ON

6

Average ProductivityThe sample size for the “Average” Category was modest with just seven sales noted. These sales ranged in value from $5,716 to $9,084 per acre. However, if the high and low sales are eliminated the range tightens to $6,000 to $7,650 per acre. The average sale price of the sales selected was $6,656 and the average price per tillable PI was $77.95. The average size of the sales selected is 52.6 acres with 82.5 percent tillable and an average PI of 103.5. The data sample available in 2014 was twice the current sample. The average price in 2014 was $6,451 per acre. Based on the prior year results, it appears that the “Average” Category was stable-to-up 3 percent in 2015.

The committee’s opinion is that this market category re-mained stable from 2014 to 2015.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcShelby Jul 40.00 88.4 102.8 6,000Shelby Jun 74.49 99.9 101.4 7,518Shelby Apr 62.91 97.2 103.1 6,100Shelby Oct 20.00 89.2 100.1 7,650Christian Jan 20.00 88.0 105.3 6,375Shelby Jan 36.90 89.5 117.4 9,084Shelby Apr 113.80 56.5 101.1 5,716Average (acre weighted) 82.5 103.5 6,656 *Securities and insurance products are NOT deposits of Heartland Bank, are NOT FDIC

insured, are NOT guaranteed by or obligations of the bank, and are subject to potential fluctuation in return and possible loss of principal.

Preserving successone legacy at a time! Give future generations the legacy you worked long and hard to build—even if they choose another career path.

Call Heartland Bank Ag Services today!

Farm Management � Sales � Trust � Asset Management

888-897-2276 � HBTAgServices.com

Marty Thornton, Managing Broker, Licensed Farmland Real Estate Sales


Helping Growers Achieve Better Results Since 1953

Brandt Consolidated, Inc.www.brandt.co

For more than 62 years, BRANDT has helped growers adopt new technologies and solu-tions to enhance their business. Our expert agronomists and formulators, exceptional customer service and product development research are a few of the reasons BRANDT has earned a position on CropLife’s Top 100 Ag Retailers list year after year.

BRANDT’s proprietary formulations, includ-ing BRANDT SMART SYSTEM® and BRANDT MANNI-PLEX® foliar micronutrients, are available at BRANDT’s 25 retail locations and other leading ag retailers worldwide.

Proud Sponsor of the NASCAR #7 Ag Car


Fair ProductivityThe committee felt that this sample was too small to extract a market direction Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcShelby Jul 25.00 63.5 99.0 4,950Shelby Jan 20.00 94.0 96.5 6,500Average (acre weighted) 77.1 97.9 5,639

Recreational Tracts The committee documented eight parcels of recreational land. These sales averaged 73.0 acres in size and were



Decatur • [email protected]

[email protected]

Ben DavisAppraiser

Paul MeharryAppraiser



Land auctions

FaRm management

Land consuLting


Chip JohnstonBroker

815.866.6161






REGI

ON

6

33.4 percent tillable. The values ranged from $2,928 for a tract with no tillable acreage to $6,300 per acre. All the sales, but one, had some tillable acreage. The tract that sold for highest price had the highest quality tillable acreage. The average price of all the sales was $4,720 per acre. This compares to an average of $4,069 per acre in 2014. Recreational land values are typically driven by discretionary income which has been improving since the economic downturn of 2008-2009. The data indicates an increase of about 16 percent year over year.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcMoultrie Oct 52.00 53.2 118.6 4,077Dewitt Oct 60.00 44.2 123.6 6,300Macon Jun 170.00 32.4 114.9 4,975Shelby Oct 40.00 42.5 109.3 4,625Shelby Jul 130.00 24.2 110.7 3,846Shelby Sep 42.00 36.4 89.7 5,300Shelby Jan 41.60 0.0 0.0 2,928Moultrie Jan 49.10 45.8 22.5 6,000Average (acre weighted) 33.4 97.1 4,720

Transitional CategoryThere were four transitional sales documented in 2015. These sales were all relatively small in size and ranged in values from $10,550 to $31,000 per acre. The $31,000 acre parcel will be used for the Inland Port on the north-


PH: 217-876-7700 FX: 217-876-7724

[email protected]


Our Service.




east side of Decatur. The average price of Transitional tracts is $19,899 which would be an increase of 4.5 per-cent over 2014. Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcDeWitt Nov 10.00 100.0 141.1 10,550Macon Jun 10.00 100.0 138.0 31,000Macon May 10.00 100.0 143.1 25,000Christian Mar 28.57 94.5 127.9 17,500Average (acre weighted) 97.3 134.5 19,899

Other Tracts

There were 4 transitional sales documented in 2015. These sales were all relatively small in size and ranged in values from $10,550 to $31,000 per acre. The $31,000 acre parcel will be used for the Inland Port on the NE side of Decatur. The average price of Transitional tracts is $19,899 which would be an increase of 4.5 percent over 2014.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcShelby Aug 521.40 88.3 143.1 11,699Piatt May 11.30 0.0 8,985Average (acre weighted) 86.4 140.1 11,641


ENHANCING FARMLAND OWNERSHIP.

MANAGEMENT REAL ESTATE SALES AUCTIONS APPRAISALS

a division of Hickory Point Bank225 North Water Street, Box 2548, Decatur, IL 62525-2548 217.872.6298

FIRSTILLINOISAGGROUP.COM

Dale Kellermann, AFMBruce Huber, AFM, ARA

Jim Schroeder, AFMSeth Baker, AFM

Logan Frye


REGI

ON

6


--- Category --- Year Excellent Good Average Fair Recreational Transitional2001 2,887 2,245 2002 3,207 2,381 1,925 967 11,275 2003 3,411 2,269 1,845 2,670 2,060 8,352 2004 4,007 3,046 2,325 1,528 8,910 2005 4,622 3,688 1,431 14,500 2006 4,785 3,633 9,416 2007 5,591 4,214 2,857 3,633 10,000 2008 6,840 5,052 4,321 3,081 4,593 8,566 2009 6,959 5,412 3,661 3,326 12,896 2010 7,574 5,949 4,425 3,066 3,574 10,365 2011 10,031 7,381 5,751 4,207 3,401 10,000 2012 11,530 9,699 8,707 6,707 3,567 12,929 2013 12,649 9,889 8,089 7,175 2014 12,327 9,399 6,591 5,750 4,076 18,644 2015 11,725 9,099 6,920 5,725 4,756 21,013 Continuously Compounded Annual Growth Rate (CCAGR) - selected periods 2001-2008 12.32% 11.59% 2008-2015 7.70% 8.40% 6.73% 8.85% 0.50% 12.82%2001-2015 10.01% 10.00% 2005-2015 9.31% 9.03% 15.76% 3.71%2010-2015 8.7% 8.5% 8.9% 12.5% 5.7% 14.1%2014-2015 -5.0% -3.2% 4.9% -0.4% 15.4% 12.0%* (Note: Limited numbers of sales in some years and special features may affect values)







Excellent Productivity 275 325 400 1 325 Good Productivity 250 300 350 1 275 Average Productivity 200 240 275 1 225

Lease TrendsLease types, for the most part, remain unchanged from prior years, but more and more tenants who have high cash rent are asking for lower rental rate with a bonus provisions (flex leases). Agricultural lenders are tightening their lending guidelines. This has resulted in some tenants giving up leases they have had for many years. Several farmers have asked their landlords to renegotiate their leases, some have agreed to do so, and others have not. There may be defaults on cash rents this year if a farmer fails to line up their credit needs in a timely fashion.

LAND AUCTIONS

When the time

comes to sell your

most valuable assets,

trust the experts.

Trust Murray Wise

Associates.

MurrayWiseAssociates.com

FARMLAND TRANSACTION EXPERTS

A Land Report National Top Auction Company

217.398.6400


REGI

ON

7

Tom Toohill – ChairSoy Capital Ag Services, Springfield, IL

Ernest Moody, CAC, AFM, ARAHeartland Ag Group, Springfield, IL

Allan Worrell, AFMWorrell Land Services, Jacksonville, IL

Joshua YoungLand Resource Group, LLC, Carlinville, IL

Josh ZipprichFarm Credit Illinois, Jerseyville, IL

Due to the diversity in soil productivity, agricultural land sale prices vary widely in the West Central Area,

designated Region Seven. In Region Seven, there are significant changes in soils from north to south by virtue of ancient glacier movements and from east to west due, in large part, to the influences of the Illinois, Mississippi and Sangamon Rivers. The broad, mostly level prairies are primarily Tama, Ipava and Sable soils north of the Mo-raine line and Virden, Herrick and Harrison soils south of the line. The rolling areas formed under upland hard wood timber are mostly Fayette, Rozetta, and Keomah soils. Adjacent to the rivers and streams are bottomlands fre-quently including Sawmill, Wakeland and Beaucoup soils. The steepest, usually timbered hillside, are frequently Hickory and Fishhook soils. There are several areas of sand outcroppings, particularly in northern Menard and

Cass Counties adjacent to the Sangamon River. Calhoun County lies farthest southwest of the Region 7 counties, and is bordered by the Illinois River on the east side and the Mississippi River on the west. These rivers influence the weather pattern sufficiently to allow successful peach and plum orchards production.

Due to the drop in grain prices the last three years, land sales values have retreated. As the grain markets turned down following a brief rally in July, and income prospects became clearer in the late fall, we believe the land mar-ket became decidedly bearish. This mood has continued as export sales are muffled by adequate world supplies, higher dollar, and efforts in South America, especially Argentina, to enhance exports. The domestic demand for livestock feed and bio-fuels is strong and supports prices

Region 7 - West Central


Total Value % Change Change in rate Avg. Cash Rent % Change Avg. Cash Rent/Ac. Per Acre in $/Acre from of land Per Acre from on recentlyFarm Classification (Typical) prior year turnover typical in region prior year negotiated leases Excellent Productivity $11,000-$12500 down 10% down 40% $300-$350 down 10- 15% Good Productivity $6,000-$8,000 down 10% up 25% $200-$300 steady Average Productivity $4,000-$6,000 down 15% same $100-$200 steady Fair Productivity $2,500-$4,000 down 15% same $75-$100 steady Recreational Tracts $2,000-$4,000 steady up 40%


better than ever. It is difficult to recall any other period when we produced four great crops in a row -- 2016 would be the unlikely fourth.

Excellent Productivity TractsThis land, generally described as flat, black and square, continues to be in great demand in our region. The princi-ple buyers have been operating farmers and investors with close ties to aggressive operating farmers. Similar to other areas in the State, region seven has locations with par-ticularly strong land markets, and other areas where land sales values tend to be less. We have observed this pattern many times over the years as the land market had contin-ued upward. In 2015, this land class held values better than others, but showed weakening during the final months of the year. The more conservative areas in region seven may have weakened relative to the stronger land market areas. The overall weakening occurred as a continuation of the plateau established in the final quarter of 2013 followed by weaker prices and no new “highs”. It appears now that the market is clearly heading down.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcSangamon Jan 85.00 96.4 139.6 13,300Sangamon Jan 92.05 97.9 136.3 14,154Sangamon Jan 88.56 94.2 133.8 10,276Sangamon Jan 80.00 98.1 137.6 13,250

Scott Feb 55.00 94.0 134.0 11,504Sangamon Mar 78.96 97.0 142.1 16,200Sangamon Mar 128.94 99.3 138.9 13,818Morgan Mar 143.78 97.9 137.9 14,752Sangamon Mar 79.00 97.1 133.8 10,250Sangamon Apr 91.48 98.8 141.8 12,321Sangamon Apr 120.00 98.0 138.0 12,500Morgan Apr 39.01 98.7 139.5 14,748Montgomery Apr 70.46 94.0 134.4 10,332Greene May 61.68 99.0 135.5 13,375Morgan Jun 132.00 99.4 141.8 14,200Sangamon Jul 209.02 96.6 140.3 12,500Sangamon Jul 79.28 99.0 138.6 14,002Sangamon Jul 79.28 96.4 137.6 14,002Scott Aug 125.06 98.0 142.6 13,500Sangamon Aug 72.34 99.3 141.9 15,540Montgomery Aug 84.02 94.0 134.5 12,500Morgan Sep 78.28 99.0 133.9 12,550Sangamon Sep 80.00 99.0 138.6 11,625Montgomery Sep 80.00 99.0 133.6 10,000Sangamon Nov 80.00 98.8 142.0 12,600Sangamon Nov 76.00 95.5 136.8 11,842Macoupin Nov 80.00 99.0 133.6 10,602Morgan Nov 48.30 97.9 142.0 13,000Morgan Nov 42.30 99.0 141.1 12,000Average (acre weighted) 97.6 138.2 12,875

Good Productivity TractsSimilar to the “excellent” land class, the “good” category values continued the downward bias in price per acre,


REGI

ON

7

but to a more apparent degree. In the southern counties of region seven, this category of land is the “best land” and in those areas values appeared to have held up the best toward year end. As the land productivity approaches the lower end of this land class, values appear to fall off rap-idly. This class usually has one or more hazards including: lessor productive soils, unusual shape, varying topography, lack of road frontage, ditches or ponds, cut by roads or railroads or other public utilities. If potential flooding is an element of hazard, the discount is higher. Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcMacoupin Feb 75.00 97.9 121.0 9,500Montgomery Feb 66.00 99.0 130.2 14,000Jersey Feb 148.05 96.6 126.9 10,638Macoupin Mar 192.67 98.9 130.2 10,700Scott Mar 80.00 89.6 128.3 10,000Scott Mar 139.70 92.6 126.2 10,000Montgomery Mar 94.99 97.0 129.2 9,475Macoupin Mar 80.00 93.8 128.2 11,000Montgomery Apr 128.00 91.0 118.7 8,750Greene Apr 83.29 97.5 130.2 11,011Macoupin May 80.00 86.9 127.9 9,400Montgomery Jun 160.00 91.0 125.4 10,156Montgomery Jul 75.83 94.0 126.0 7,247Morgan Aug 95.84 95.8 120.9 11,600Morgan Aug 45.36 98.0 117.2 11,000Macoupin Aug 78.00 97.7 122.0 9,550Morgan Aug 116.59 96.5 127.7 11,100Macoupin Aug 160.00 96.1 120.6 9,050Morgan Sep 88.00 98.4 117.4 11,750

Montgomery Oct 76.00 96.0 131.8 12,500Montgomery Oct 150.34 63.0 130.7 7,915Montgomery Oct 181.56 93.0 127.4 10,506Sangamon Nov 52.87 90.0 120.6 6,100Macoupin Nov 270.75 88.6 126.7 7,922Macoupin Nov 163.86 98.0 129.7 9,500Macoupin Nov 51.39 94.4 130.3 8,000Macoupin Nov 83.37 92.8 125.4 8,600Macoupin Nov 150.66 87.2 120.1 7,750Macoupin Dec 64.58 98.0 126.4 8,029Macoupin Dec 60.00 98.0 132.0 10,500Average (acre weighted) 92.7 126.0 9,676

Average Productivity TractsThis classification of farmland includes significant variation of farms across the region. Most of the sales of average productivity varied in sale prices typically from a low of about $3,000 per acre to as much as $8,000 per acre. The variation is a function of percentage tillable and production hazards. Suitability for pasture or recreational use of the non-tillable acres also contributes to the price of a property. Higher prices generally are nearer to met-ropolitan centers and at the higher end of the productivity range. It also appears as the productivity rating approaches the low end of the average category, agricultural use prices are extremely discounted. In 2015, in our area, this land followed the trend of the better land prices, having a down-ward direction.



Jacksonville • [email protected]

Jerseyville • [email protected]

Sherman • [email protected]

Ben Davis Appraiser

Josh Zipprich Appraiser


Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcScott Jan 72.00 93.0 116.8 6,250Macoupin Feb 74.92 93.3 113.0 8,000Montgomery Feb 75.00 96.0 112.7 8,450Montgomery Feb 80.00 85.0 101.2 5,300Macoupin Mar 54.64 83.0 106.4 5,335Macoupin Jun 72.16 82.5 114.2 8,575Montgomery Aug 63.23 94.0 111.2 6,300Montgomery Aug 65.00 84.0 110.7 6,750Calhoun Oct 81.21 86.8 107.7 5,250Montgomery Oct 50.60 90.0 106.7 5,138Montgomery Nov 160.00 82.0 104.5 5,000Macoupin Nov 36.89 96.0 110.6 6,250Macoupin Nov 62.96 92.0 110.5 6,300Montgomery Dec 80.00 87.0 110.9 6,875Average (acre weighted) 88.1 109.3 6,337

Fair Productivity TractsThere were a very limited number of sales of this clas-sification noted in our region. Given the high input costs for seed and fertilizer, and the risk of production, income expectations are very tempered on this quality of land. Depending on the topography and location, recreational use may help support the value of this type of land more than farming

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcMacoupin Jan 25.03 50.0 97.7 4,794Morgan Jan 40.00 97.5 76.9 2,550Scott Apr 84.50 18.2 98.4 2,781Montgomery Apr 80.00 8.0 99.3 2,005Morgan Apr 20.00 74.5 97.7 6,700Morgan Jun 64.44 51.2 96.9 3,675Montgomery Aug 40.84 14.0 95.9 3,134Montgomery Nov 80.00 47.0 85.2 4,000Average (acre weighted) 37.8 93.6 3,303

Recreational TractsSales of average to fair land with a low percentage tillable may be supported by recreational use. We noted many sales of low percent tillable land showing a premium clearly above the tillable portion. This premium may be for pasture land, timber, or recreational uses. We believe that sales values of this type of land have at least held steady. Hunting leases are common in Region 7. These leases are common on both upland and bottom land tracts. Many unlevied or otherwise frequently flooded bottom-land farms adjacent to rivers or streams in our area are enrolled in the government long term set aside (CREP) program. Renewal contract payments per acre of these set aside programs with the government are based on cur-rent rental rates of land, and the rates were “enhanced” to encourage participation. As a result, those up for renewal of these contracts seemed handsomely rewarded in 2014. Currently, there is no “enhanced” part of CREP program


REGI

ON

7

available. There are other alternatives to re-enroll these acres, including one requiring the plant-ing of “pollinators”. These tracts are at-tractive for hunting depending on the amount of wooded area that compli-ments the set-aside. Typically we don’t see much premium added to the value of this type of land due to the govern-ment program. Land is a long term investment, and in the long run, who knows if the CREP program “enhanced” or otherwise is going to be available. As a final note, since recreational tracts appeal to those outside of the typical farmland invest-ment market, care should be taken in the marketing plan to reach those people. We noted an auction sale of some recreational ground that was later resold by the purchaser at a hefty premium.

Sale Total TotalCounty Date Acres Price/AcMorgan Jan 122.00 2,705Montgomery Jan 37.60 2,700Montgomery Feb 40.00 1,200Montgomery Feb 40.00 2,700Morgan Mar 20.00 3,150Greene Mar 36.47 4,044Calhoun Mar 159.00 2,704Jersey Mar 61.00 2,825Macoupin Apr 87.75 3,020Montgomery Apr 40.00 2,250Calhoun Apr 79.00 3,350Scott Apr 173.57 2,350Cass May 179.00 3,637Montgomery May 25.00 3,000Calhoun May 29.81 3,000Morgan Jun 21.17 4,110Morgan Jun 29.00 3,000Greene Aug 41.55 3,610Greene Sep 40.70 3,501Montgomery Oct 25.81 2,800Montgomery Nov 20.00 2,750Average (acre weighted) 2,933



Land auctions

FaRm management

Land consuLting


Chip JohnstonBroker

815.866.6161






Median Values of Reported Sales by Year and Class, Region 7* - - - - - - - Land Class - - - - - - -

Year Excellent Good Average Fair 2001 3,444 2,709 2,020 938 2002 3,449 2,500 2003 3,563 2,750 2,350 2004 3,700 3,000 2,570 2,573 2005 4,880 3,525 2006 4,568 3,246 2,178 2007 5,330 4,493 4,191 2008 6,088 5,100 3,349 2009 7,212 5,389 3,969 2010 7,450 4,864 4,660 3,224 2011 10,568 6,952 5,525 1,825 2012 11,713 10,413 5,713 3,020 2013 13,250 9,900 6,500 2014 13,750 9,000 7,386 3,775 2015 12,600 9,775 6,275 3,405 Continuously Compounded Annual Growth Rate (CCAGR) - selected periods2001-08 8.14% 9.04% 7.22% 2008-15 10.39% 9.29% 8.97% 2001-15 9.26% 9.17% 8.10% 9.21%2005-15 9.49% 10.20% 2010-15 10.5% 14.0% 6.0% 1.1%2014-15 -8.7% 8.3% -16.3% -10.3%

* (Note: Limited numbers of sales in some years and special features may affect values)

Percentage Change of Average by Period, Region 7* - - - - - - - Land Class - - - - - - -

Year Excellent Good Average Fair2001 - 2002 -1.3% 2.3% 2002 - 2003 5.9% 14.8% 2003 - 2004 2.9% 6.5% 8.9%2004 - 2005 30.7% 11.8% 2005 - 2006 -6.0% -1.8% 2006 - 2007 19.9% 26.0% 65.5% 2007 - 2008 8.2% 10.6% -24.4% 2008 - 2009 9.6% 8.2% 18.9% 2009 - 2010 9.3% 3.9% 14.1% 2010 - 2011 33.0% 29.7% 4.8% -56.9%2011 - 2012 11.8% 34.9% 21.9% 50.4%2012 - 2013 10.9% -5.7% 12.5% 2013 - 2014 4.1% -7.0% 9.0%2014 - 2015 -4.9% 4.6% -14.3% -3.8%Ave 2001-2015 9.57% 9.91%

* (Note: Limited numbers of sales by year may affect representativeness)


REGI

ON

7


PH: 217-876-7700 FX: 217-876-7724

[email protected]


Our Service.
















a division of Hickory Point Bank

225 North Water Street, Box 2548, Decatur, IL 62525-2548 217.872.6298



MANAGEMENT REAL ESTATE SALES

Dale Kellermann, AFMBruce Huber, AFM, ARA

Jim Schroeder, AFMSeth Baker, AFM

Logan Frye

AUCTIONS APPRAISALS



Excellent Productivity 300 340 375 1 year 340 50 10 30 10Good Productivity 225 250 300 1 year 275 Average Productivity 200 225 250 1 year 225 Fair Productivity 150 150 200 1 year Recreational Land 25 Pasture 40

Lease Trends

New leases, similar to farm sales, are retreating. The declining market has become more pronounced in the fourth quarter of the year. There are distinctive areas that have greater potential for higher rents (and sales). While there are always outliers, these locations seem to be more resilient to the downward pressure from the market.

Cash rents are feeling pressured just as the land market is. Owners are hesitant to lower rents and farmers don’t want to risk losing ground and are still willing to pay rents above the economic levels justified. There was a cash rent auction in our area that went for $390 per acre for 3 years which was very aggressive. Demand to rent recreational land is not as strong as it once was.


REGI

ON

8

Dale Kellermann, AFM, CCA – ChairHickory Point Bank Ag Services, O’Fallon, IL

Ronald C. AuldVolkert, Inc., Collinsville, IL

Bret Cude, AFM, CCAFarmers National Co., Nashville, IL

Daniel A. Davis, AFM, ARA Arch Ag Services, LLC, Columbia, IL

Wayne & Jamie KellerBuy-A-Farm Land & Auction Co., Sparta, IL

Brad HeinzFarm Credit Services of Illinois, Mahomet, IL

Region 8 in Southwestern Illinois consists of seven counties, four of which border the Mississippi River.

The counties located in Region 8 are Madison, Bond, St. Clair, Clinton, Washington, Monroe, and Randolph. The city of St. Louis is located across the river from Madison and St. Clair counties. St. Louis has a locational influence on land values in the region due to its large population base and development potential. The western halves of Madison and St. Clair counties are mostly urbanized and residentially developed. Together Madison and St. Clair counties have over a half million population.

Most land close to cities (Transitional Tracts) is still sell-ing at, or just above farmland values. Prior to 2008, those parcels were selling for 3 times the value of farmland. Nevertheless, the population in the St. Louis metropoli-

tan area still provides a strong economic engine for the economy of the region and has a positive influence on land values depending on location. With a large population base within easy driving distance, recreational land has traditionally been in high demand in Region 8. 2015 saw a jump in the number of sales of this land category.

Agricultural land in Region 8 is mostly of average produc-tivity (100-116 PI) and is used for raising corn, soybeans, and wheat. The eastern side of Region 8 has some scat-tered small beef operations, but there are many dairies and some large hog operations. The large dairies and hog operations have competed vigorously with large corn and soybean operations, and land prices reflect that locally. In addition, slowly expanding communities continue to add to upward pressure on land prices. Farmers are more

Region 8 - Southwest



Excellent Productivity $300 Steady $300Good Productivity $8,000-$12,500 13% lower to 4% higher 20% lower $250 Steady $250Average Productivity $7,500-$13,350 Steady to 9% higher 10% higher $215 Steady $215Fair Productivity $5,975-$10,050 2% to 16% higher 10% higher $180 Steady $180Recreational Land $3,250-$5,550 1% to 2% higher 20% higher $25 25% higher $25Transitional Tracts $8,700-$19,972 4% to 30% higher Steady


confident that they can raise higher yields on lower quality farms by using newer technologies and genetics. There has also been a surge in tile installation on the better soils in Region 8.

Like many other parts of the state, the region experienced a very wet spring and early summer, while harvest weather was nearly perfect. Corn was planted on time in most areas, but persistent rainfall delayed planting of many soybean acres. Yields on flat fields suffered more than on those fields that have some slope. The wet spring also caused problems for wheat. While yields were average-to-above average, low test weights and vomitoxin caused hefty price discounts.

Nationally, yields were high enough to push grain prices lower. Average to above average yields in Region 8 (es-pecially for soybeans) helped offset some of the effects of the decrease in grain prices, and helped to keep land values steady to higher. The number of sales in most categories was higher too, as some landowners decided to get their farms sold prior to further weakness in the grain markets

Good Productivity TractsRegion 8 has very few areas with soils at 133 and above. One sale in the Excellent category occurred in 2015, but it is included in the Transitional Tracts section. Unfortunately, the majority of the Excellent soils in Region 8 are located in development areas around Scott Air Force Base, Belleville, and Mascoutah.

There are spotted areas of Good Productivity soil types intermingled among Average Productivity soil types in the northern and eastern portion of Madison County, the east-ern portion of St. Clair County, river bottom soils, and the western parts of Clinton, Bond, and Washington Counties in Region 8.

Sale prices in 2015 for the Good Productivity tracts in Re-gion 8 generally ranged from $8,000 per acre to $12,500 per acre. This range widened as compared to 2014. The lower value is around 13 percent lower than 2014, while the higher land sales are about 4 percent higher than 2014. The num-ber of sales in 2015 was lower for this category of soils. As expected with the drop in grain prices, we saw higher sales prices in the first half of the year, and lower prices toward the end of the year.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcMadison Nov 34.50 98.0 119.0 8,000Madison Nov 79.90 98.0 119.0 8,000Clinton June 221.10 91.0 120.0 8,564Madison Nov 180.70 99.0 125.0 10,000Madison Dec 53.61 99.0 131.0 10,200Madison Jan 40.00 96.0 121.0 10,500St. Clair Oct 84.00 99.0 126.0 12,000St. Clair Dec 45.99 99.0 130.0 12,000Madison Nov 173.50 97.0 130.0 12,000Madison Jan 80.00 94.0 129.0 12,200Clinton Nov 40.00 99.0 119.0 12,250Washington Jan 57.00 100.0 117.0 12,277Madison Jan 70.00 96.0 130.0 12,300St. Clair May 40.00 92.0 131.0 12,350Madison July 18.00 99.0 132.0 12,667Average (acre weighted) 96.4 124.9 10,649

Average Productivity TractsMost of Region 8 is made up of Average Productivity soil types, and the number of sales remains strong. These soils types tend to be generally level to undulating with mostly rectangular shaped fields, but may also have some crossable waterways or ditches associated with them. We placed the representative sales in sales price order to show how wide that sales price range is, even though the quality of farms (percent tillable and PI) is not very diverse. Sales prices expanded their range: in 2014 they were primarily from $7,500 to $12,200 per acre, but 2015 was $7,500 to $13,350. That’s an increase of 9 percent on the top end. Also, there seemed to be a pretty even mix, throughout the year, of sales on the low end as well as on the high end.

Clinton County is well known for its competition for land, which is primarily fueled by the dairy and hog farms, as well as pressure from the Metro East. The land market in 2015 was no exception, with three of the top five sales in this county. Also of note are the two sales in Randolph County ($9,143 and $9,252). In spite of sitting close to the levee for the Mississippi River with the threat of flooding, these are strong values.









REGI

ON

8

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/Ac Clinton Nov 153.50 90.0 102.0 5,668Clinton Feb 75.00 99.0 102.0 6,417Washington Jan 30.00 93.0 107.0 6,750Randolph June 20.24 91.0 104.0 7,250St. Clair June 21.01 98.0 110.0 7,496Monroe Aug 36.58 94.0 102.0 7,500St. Clair Mar 120.70 97.0 101.0 7,541Clinton Oct 78.33 95.0 114.0 7,797Washington Nov 95.00 92.0 105.0 7,800St. Clair Apr 37.16 96.0 104.0 8,500Bond Jan 79.00 97.0 102.0 8,900Bond Dec 80.00 99.0 103.0 9,000Madison Dec 23.16 95.0 104.0 9,050Randolph Nov 114.80 99.0 112.0 9,143Randolph June 63.50 94.0 111.0 9,252Madison Oct 102.30 99.0 104.0 9,494St. Clair Mar 44.65 99.0 101.0 9,742Randolph Mar 40.00 90.0 105.0 9,750Washington Apr 20.00 100.0 110.0 9,750St. Clair Aug 40.52 99.0 115.0 9,872Washington Dec 149.57 99.0 101.0 10,095Madison Mar 38.00 98.0 109.0 10,100Madison Nov 58.60 97.0 104.0 10,239Washington May 40.00 100.0 102.0 11,000Madison Nov 40.20 98.0 105.0 11,200Clinton Nov 38.10 93.0 104.0 11,417Bond Apr 80.00 98.0 100.0 11,500Washington Dec 40.88 100.0 109.0 11,986Washington Apr 80.00 99.0 105.0 12,000Clinton May 95.97 98.0 114.0 12,000Clinton Mar 39.50 97.0 107.0 12,747Madison June 36.68 99.0 110.0 13,450Monroe July 38.23 99.0 112.0 13,863Clinton Oct 72.09 97.0 105.0 15,189Average (acre weighted) 96.7 105.5 9,577

Fair Productivity TractFair Productivity Tracts tend to be located in the more roll-ing areas of Region 8, and have timber soils with erosion control challenges. Often, fields are irregularly shaped with a certain amount of non-tillable woods or waste. There may be some creek bottom soils associated with these farms at the base of the rolling hills or steep slopes. These types of farms generally require additional inputs of time, labor, and management, and can be more inefficient to farm with large modern machinery. The Fair Productivity Tracts are more prevalent toward the southern and eastern portions of Re-gion 8 and tend to be located near major creeks and streams where the topography slopes off toward the creek bottoms.

Once again, the sales are in order of price to show the lack of consistency relating to percent tillable or PI or size. This category did break its trend of decreasing its range of val-ues. While the lower end of the price range stayed steady, the upper end of the range saw some very strong sales at $10,000 per acre and higher. In 2015, the high was $11,094 compared to the high in 2014 of $9,275 representing an increase of 20 percent.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcWashington Nov 100.00 88.0 92.0 4,500Clinton Mar 37.45 86.0 97.0 5,340Randolph Mar 19.56 99.0 98.0 5,881Washington May 58.79 99.0 98.0 5,953Randolph Apr 39.46 79.0 99.0 6,082Clinton Feb 26.18 86.0 98.0 6,417Washington Jan 51.66 85.0 99.0 6,500Monroe Oct 40.00 88.0 99.0 7,000St. Clair June 38.54 64.0 86.0 7,875Monroe Oct 40.00 89.0 99.0 8,200Bond Mar 25.23 96.0 97.0 8,918Monroe Aug 77.00 87.0 97.0 9,545St. Clair Mar 48.52 92.0 99.0 9,996Bond June 90.00 98.0 99.0 10,000Monroe Jan 22.28 88.0 98.0 10,200Madison Nov 38.31 92.0 95.0 11,094Average (acre weighted) 88.9 96.7 7,660

Recreational TractsRecreational tracts in Region 8 are usually either com-pletely or mostly wooded. If there are tillable fields, they tend to be small and oddly shaped, making them difficult to farm efficiently. There is usually little or no agricultural income associated with these tracts. Usually, the buyers of these recreational properties are non-farmers and hunt-ers looking for the recreational opportunities, rather than agricultural production of the tract.


There is good demand for recreational tracts in Region 8 due to the large population base around St. Louis. Most of Region 8 is within an hour’s drive of St. Louis, making it convenient to utilize a recreational property. The Kaskaskia River flows through the eastern and southern portions of Region 8, and much of the wooded area in the Region fol-lows the Kaskaskia and its tributaries. And, of course, we have the Mississippi River and its tributaries, too.

The demand for recreational properties has continued to increase and recover since 2008. Base values on the low end of the range (in the area of $3,250 per acre) rose just slightly: around one percent. The high end saw a similar one percent gain. 2014 sales were around $5,470, while the 2015 high-end range was around $5,550.

Some sales to note in the table: The 116 acres at $970 per acre sat between the Mississippi River and the levee. So, how much do you pay for land when in the spring you may have only 100 acres, but in a dry summer you may have 130 acres? The answer is apparently around $970 per acre.

The next two sales ($1,750 and $2,357) were for parcels that do not lie next to a township road. It is common to see a discounted price for easement access or for ‘questionable access’. However, the Washington County sale at $3,350 also sat ‘off the road’, yet it shows no discount.

We saw little evidence that land values fluctuated much throughout the year (ex. Clinton County at $3,000 in April and November), while we did see a trend of tracts with some tillable acres garnering a little higher values.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcRandolph May 116.00 0.0 970Washington Dec 17.03 0.0 1,750Clinton Nov 24.18 29.0 128.0 2,357Clinton Apr 20.00 0.0 3,000Clinton Nov 24.00 0.0 3,000Washington Nov 20.00 0.0 3,350Bond Aug 38.54 17.0 103.0 3,477St. Clair Jan 42.00 0.0 3,500Monroe Sep 228.50 20.0 102.0 3,700Randolph Aug 80.00 32.0 109.0 3,750Washington Dec 20.00 0.0 3,750Bond Oct 55.53 29.0 101.0 3,883Monroe Jan 40.63 0.0 3,938St. Clair Jan 49.38 32.0 114.0 4,050Bond July 20.00 32.0 118.0 4,500Randolph Apr 30.70 18.0 93.0 4,723Bond Feb 45.00 18.0 108.0 4,844Madison May 36.42 27.0 108.0 5,491Monroe Feb 25.27 33.0 116.0 5,500Madison Nov 29.56 0.0 5,700Average (acre weighted) 16.1 69.9 3,569



Red Bud • [email protected]

Highland • [email protected]

Brad HeinzAppraiser


REGI

ON

8

Transitional TractsWhen Will the Developers Return to the Market?

by Dan Davis

The purchase of land for residential development in the Metro-East area had slowed in 2007 with most of the clos-ings being sales contracts carried over from 2006. After the housing and financial collapse in 2008, sales for develop-ment land ceased to occur. In 2009-11, some developers liq-uidated inventoried land to reduce debt with farmers being the only willing buyers at agricultural values: 50 percent to 60 percent discounts from the original purchase price. Since then, sales of land for residential development over 20 acres in size are scarce.

We have seen 80-acre tracts next to subdivisions with all utilities available being purchased by local farmers at the current cropland value. We have sales where farmers will discount property that required traveling through a residen-tial area to access the farmland. In order to market a failed residential golf course southwest of Belleville, the owner (a bank) had the zoning changed from residential to agricultur-al and it still took four years to sell two 20+ acre size tracts while two large tracts remain on the market. Most communities in the Metro-East saw permits for new single family houses peak in 2005-06. The demand for new building permits bottomed in 2009-11 and has shown a slow increase into 2015. The number of new housing permits

issued in 2015 for Madison, St. Clair and Monroe Counties totaled 787, or 32 percent of the total number issued in 2006.

In 2014, the Troy area saw 63.1 surveyed acres, zoned for ag-ricultural use, receive a high bid of $11,000 per acre. Offered at public auction, it did not sell due to a seller’s reserve. It adjoins the northeast side of Troy and is located on the lower side of Lower Marine Road. It has developed subdivisions along its west boundary and a country subdivision across the road to the north. The seller currently has the property listed with a real estate broker with an asking price of $17,900 an acre. Of the 63 acres, 46.6 acres are tillable with the non-tillable being a wooded area along the east side.

In November of 2015, 105.28 acres (75 percent tillable) sold for $8,700 per acre. It is one mile southwest of the tract above. There are residential subdivisions along its west, south and half of its east boundaries. It was first listed in 2007 for $34,000 per acre. Over time, the asking price was lowered to $12,000 per acre. It was bought by a local devel-oper to be developed at a later date. This is the first known purchase in the past eight years of a large tract to be devel-oped for residential use.

Also in November of 2015, a 48.73-acre tract (98% till-able), which adjoined the south city limits of Highland, sold at public auction for $9,100 per acre. Residential land was along its west and north boundaries. Two other tracts with similar soils ¼ mile to the south sold at the same auction for


MANAGEMENT REAL ESTATE SALES AUCTIONS APPRAISALS



138 Eagle Drive, Suite B, O’Fallon, IL [email protected]

Dale Kellermann, AFMCertified General Appraiser, Broker


$11,100 and $11,200 per acre without sewer being avail-able. Farmers aren’t interested in land adjoining residential land. They cite problems with homeowner encroachment and dumping into cropland; complaints to city police about noisy fieldwork; equipment using residential streets; and herbicide drift.

In the levee protected American Bottom along the western limits of Columbia, 79 acres of Class B cropland were listed on November 13, 2013 for an asking price of $22,930 per acre. They adjusted the value down to $19,977 per acre in June 2014. When the listing expired, the family solicited local farmers to purchase the property. The contract price was an even $15,000 per acre. The sellers confirmed they had two back up offers from other farmers at the same value. Land adjoining to the north and west side is vacant crop-land. Development in this portion of the river bottoms has been confined mostly to the west side of the railroad tracks, approximately a half mile to the west, which is an industrial park in the city limits of Columbia. Land along the east is residential housing on the bluffs overlooking the bottoms.

A farmer/ag business man purchased 100 acres of Class A farmland in November 2015 for $15,335 per acre. It adjoins the east side of Southwestern Illinois College with frontage on Carlyle Avenue, a four-lane road between Belleville and Scott Air Force Base. A Lowe’s, Home Depot, YMCA, and the lightrail metro train are all within a half mile of the land. The 97 acres across the road is zoned mixed commercial and light industrial with an asking price of $19,000 per acre. The adjoining land to the east is listed for $30,000, zoned agri-culture. The 100 acres 3/4 mile to the east is listed at $46,500 per acre, an asking price that has not changed in 10 years.

The $19,972 sale was in O’Fallon. The tract is in a prime location for development. It has Interstate 64 on its south border, US Highway 50 on its north, a subdivision to the west, and a busy city street and commercial development to the east. The seller was a bank: this tract was purchased in 2005 at $40,104 per acre!

The City of Belleville announced on November 30, 2015, that land a mile south of Belleville West High School had been incorporated into the city limits with a planned new res-idential development to take place on the west side of Frank Scott Parkway. This 51-acre tract had been purchased in February 2006 for $1million. When the financial and housing collapse occurred in 2008, development of the tract was put on hold. The same ownership has held the original purchase for 9 years and now feels the market is ready for upscale housing with an average price to be $700,000 per home.

The National Geospatial-Intelligence Agency, an arm of the U.S. Defense Department, plans to announce the location of a new facility in the spring of 2016. The narrowed selections are: 90 acres on the north side of downtown St. Louis, or 382 acres of cropland next to Scott Air Force Base that St. Clair County will donate for free. The new facility brings with it 3,000 jobs. This would be an economic boon to the area.

In summary the vast majority of buyers of land over 20 acres in size in the Metro-East are local farmers. As cur-rently developed lots are utilized slowly, there will come a time when a need for undeveloped land surfaces. Whether that time is 2016 or 2017 will be determined by continued economic growth, perhaps kick-started by a new GIS map-ping facility or by state policies and budget. Time will tell.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcMadison Nov 105.28 75.0 119.0 8,700Madison Nov 48.73 88.0 109.0 9,100Monroe June 79.59 99.0 129.0 15,000St. Clair Nov 100.00 94.0 138.0 15,335St. Clair Sept 34.50 100.0 124.0 19,972Average (acre weighted) 89.4 125.5 12,974

Median Values of Reported Sales by Year and Class, Region 8* - - - - - - - Land Class - - - - - - - Year Good Average Fair Recreational Transitional2001 3,016 2,667 1,735 1,331 3,589 2002 3,807 2,619 2,200 1,229 3,879 2003 3,535 3,409 2,607 1,507 11,836 2004 4,065 2,654 1,770 12,400 2005 5,450 3,400 2,970 2,526 11,200 2006 7,246 3,702 2,513 13,051 2007 4,750 3,161 3,073 9,765 2008 7,950 6,188 3,166 12,000 2009 7,000 5,450 4,002 3,258 10,836 2010 7,887 7,000 5,502 2,871 8,900 2011 10,350 7,750 5,200 2,756 9,249 2012 8,932 7,707 9,307 3,542 2013 10,000 8,860 7,314 3,851 9,511 2014 10,123 9,269 7,065 4,051 12,340 2015 12,000 9,746 7,438 3,750 15,000 Continuously Compounded Annual Growth Rate (CCAGR) - selected periods2001-2008 13.85% 12.02% 8.59% 17.24%2008-2015 5.88% 6.49% 12.20% 3.19%2001-2015 9.86% 9.26% 10.40% 7.40% 10.22%2005-2015 7.89% 10.53% 9.18% 3.95% 2.92%2010-2015 8.4% 6.6% 6.0% 5.3% 10.4%2014-2015 17.0% 5.0% 5.1% -7.7% 19.5%* (Note: Limited numbers of sales in some years and special features may affect values)


REGI

ON

8

Lease TrendsBase cash rents did not change in the winter of 2014/2015, however, bonus clauses were adjusted lower because grain prices were slipping. High soybean yields triggered those bonus clauses where grain prices are not factored in, but corn yields struggled and did not garner many bonuses. For those flexible leases that factor in price as well as yield, bonuses were from small to non-existent. There are a few multi-year cash rent leases in the marketplace that were negotiated when grain prices were higher, but none of those tenants are asking to decrease those cash rents.

There are still quite a few long term landowner-tenant relationships in which cash rents remain somewhat low and the leases automatically renew. Crop share leases remain popular in southern Illinois. Most crop share leases


Excellent Productivity 270 285 325 1 year 300 5 85 10 Good Productivity 225 240 325 1 year 250 5 85 10 Average Productivity 175 200 275 1 year 215 5 85 10 Fair Productivity 150 170 250 1 year 180 5 85 10 Recreational Land 20 25 30 1 year 30 100 Pasture 15 20 40 1 year 20 100

are 33 percent to 66 percent or 40 percent to 60 percent (with the lower percentages going to the landowner along with some crop input expenses).

An interesting story involved a large landowner and two large farmers. The landowner had approximately 3,000 acres of fair to average land available for lease. The landowner asked two very large, very aggressive farming operations for $225 per acre cash rent, and he asked them to decide which acres each operator wanted. Between the two operators, they requested a total of around 2,500 acres.

Essentially, the operators did not want to farm the least productive 500 acres. So, the landowner opened up those 500 acres to other local farmers, and he asked them to submit bids. The top bidder offered $265 per acre....$40 per acre higher than what the landowner had requested for his best land!



REGI

ON

9

David M. Ragan – Chair Farm Credit Illinois, Effingham, IL

Donald K. Cochran, ARACochran Ag Services, Wheeler, IL

Shanda McCroryFarm Credit Illinois, Flora, IL

Norbert Soltwedel, RPRA Shumway, IL

Lower grain prices have led operators to be less willing to pay the higher rents that were common two years

ago. There have been several recent auctions at which there were “no sales,” because the auctioneer could not reach the reserve set by the seller(s). Land auctions have also seen a reduced number of active bidders attending. Weaker grain prices have led to weaker financial state-ments, and have reduced the number of farmers that are willing purchase additional land.

Buyers tend to be more competitive for better qual-ity land. In a December 2015 Fayette County auction, a 40-acre tract that was 98.4 percent tillable with a tillable PI of 102.9 brought $8,300 per acre, and an 88-acre tract

that was 85.5 percent tillable with a tillable PI of 100.2, brought $5,400 per acre. Similarly, in a December 2015 Lawrence County Auction, a 40-acre tract, that was 96.8 percent tillable with a tillable PI of 106.4, brought $8,215 per acre and a 61.55-acre tract, that was 78.4 percent till-able with a tillable PI of 93.0, brought $4,305/ acre

Excellent Productivity TractsOnly one sale is included in this category as there is very little land of this class in this region. The property was ac-cessed by easement and the non-tillable land was wooded. Part of the woodland was divided by highway right of way and not accessible by an easement. The buyer is planning to irrigate the property in the future.

Region 9 - Southeast


Total Value % Change Change in rate Avg. Cash Rent % Change Avg. Cash Rent/Ac. Per Acre in $/Acre from of land Per Acre from on recentlyFarm Classification (Typical) prior year turnover typical in region prior year negotiated leases Excellent Productivity $11,250 N/A N/A 285 N/A 285Good Productivity $8,800 -7.4% Steady 250 -7.5% 230Average Productivity $7,000 -6.7% Steady 200 -7.5% 185Fair Productivity $5,800 -2.5% Steady 160 -7.5% 150Recreational Land $3,100 -4.6% Steady N/A N/A N/ATransitional Tracts $18,000 N/A Few sales N/A N/A N/ABottomland $5,500 -5.2% Steady 150 -7.5% 140


Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcLawrence Feb 114.50 70.1 138.6 8,734

Good Productivity Tracts

Most soils in our region have a productivity level below 115, so we have few sales of Good Productivity soils. The 2015 sales of good productivity land did indicate a de-crease in value over the prior year, but with little activity in this class, it would be difficult to call this a trend.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcLawrence Feb 49.68 66.1 125.5 5,900Clark Sep 138.30 99.1 120.1 8,681Fayette Dec 60.00 98.6 117.5 7,000Average (acre weighted) 92.4 120.5 7,717

Average Productivity Tracts

Average Productivity soils make up the majority of the cropland in our region. Most of the soils are developed from prairie and timber vegetation. For this analysis, sales that were 75 percent or tillable were include in the report.In 2015, we have seen changes in sales activity and pric-ing. Sales activity increased in Richland and Cumberland Counties but was down in Effingham and Jasper Counties. Prices in Cumberland County seemed to remain strong,

while Wayne County experienced a larger decrease in sales prices.

In 2015, sale prices ranged from around $39.31 per PI point to $122.25. The average for all sales reviewed in Region 9 was $72.54 per PI point; similar to the $72.42 per PI point from the 2014-year.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcLawrence Jan 40.00 98.3 116.8 7,809Crawford Jan 49.97 98.5 109.1 9,482Jasper Jan 83.00 100.0 110.6 7,229Wabash Feb 57.96 87.4 105.5 6,981Effingham Feb 40.00 98.2 103.3 8,500Lawrence Feb 36.57 96.7 107.9 7,610Richland Mar 65.40 99.0 101.8 7,000Cumberland Mar 30.54 100.0 106.2 7,859Effingham Mar 43.50 95.0 103.3 7,816Wabash Apr 63.83 99.0 112.1 9,450Jasper Apr 120.00 97.1 108.7 8,056Fayette Apr 38.69 94.3 106.0 5,800Marion May 40.00 89.0 102.0 7,875Jasper May 30.00 98.8 107.3 7,300Fayette May 40.00 89.1 100.5 7,050Richland Jun 40.00 100.0 105.6 6,950Richland Jun 13.29 98.6 105.5 8,992Jasper Jul 30.00 99.2 110.6 8,433Crawford Jul 50.00 96.6 100.1 8,000Wayne Aug 41.00 81.7 105.9 6,295Wayne Aug 41.00 100.0 108.7 6,761Fayette Sep 35.64 95.7 105.5 6,762Lawrence Sep 40.00 100.0 116.8 7,500Clay Sep 93.13 99.0 98.1 7,000Clark Oct 40.00 98.0 109.2 7,400Fayette Oct 93.00 90.7 102.1 6,452Jasper Oct 40.00 98.8 104.3 7,507Clay Oct 40.00 96.6 107.9 7,500Crawford Oct 24.00 97.0 111.1 8,000Clark Nov 120.00 98.8 110.7 7,080Fayette Nov 75.08 82.0 113.1 6,593Fayette Nov 53.00 81.5 100.8 6,453Clay Nov 40.00 98.2 106.0 6,800Fayette Dec 40.00 98.4 102.9 8,300Wayne Dec 320.00 75.8 114.7 4,225Jasper Dec 49.04 96.0 111.4 6,844Crawford Dec 40.20 100.0 108.5 8,745Average (acre weighted) 92.6 108.0 6,948




MANAGEMENT

REAL ESTATE SALES

AUCTIONS

APPRAISALS

Dale Kellermann, AFMCertified General Appraiser, Broker

138 Eagle Drive, Suite B, O’Fallon, IL 62269618.622.9490


REGI

ON

9

Fair Productivity TractsMost of the Fair Productivity land is located in the south-ern part of our region, but fair soils are present in all coun-ties. Many of these tracts are only partially tillable and may have irregular shaped fields. For this analysis, sales that were 50 percent or more tillable were included in the report.

In 2015, price of fair cropland ranged from $39.31 to $120.43 per PI Point; with an average of $65.69, down 11.1% from the 2014-year

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcWabash Jan 90.00 84.1 99.0 6,389Effingham Jan 40.00 73.7 98.6 5,000Crawford Feb 25.00 98.8 99.9 4,992Crawford Mar 70.00 99.2 97.0 6,071Effingham Mar 32.00 76.9 94.9 4,700Lawrence Mar 94.33 74.9 95.9 6,997Edwards Mar 53.70 89.7 96.6 4,842Wayne Apr 40.00 97.0 97.1 5,250Clay Apr 25.50 94.0 92.8 3,451Cumberland Apr 22.50 100.0 95.0 3,733Richland Apr 50.76 86.0 91.8 3,157Edwards May 37.00 54.1 96.8 4,459Richland May 20.00 73.8 93.5 4,450Lawrence May 85.00 81.3 97.4 6,647Fayette May 119.00 73.9 94.8 4,202

Crawford Jun 21.25 83.5 98.3 5,829Wayne Aug 21.00 60.1 98.3 4,548Wayne Aug 78.96 69.3 98.6 3,468Cumberland Oct 240.00 71.6 99.9 7,000Clay Oct 26.51 89.6 93.8 4,050Clark Nov 129.00 52.2 96.1 3,700Edwards Nov 40.00 95.9 96.4 5,000Effingham Nov 40.00 73.1 99.9 4,590Wayne Nov 33.28 75.8 93.8 3,005Effingham Dec 40.00 52.1 95.6 6,000Richland Dec 43.32 93.4 99.0 6,601Lawrence Dec 61.55 78.4 93.0 4,305Average (acre weighted) 76.8 96.9 5,247



Effingham • [email protected]

Lawrenceville • [email protected]

Dave RaganAppraiser

Shanda McCroryAppraiser


Recreational TractsRecreational land prices appeared to have decreased slightly in 2015. Many of these tracts include some tillable acres in smaller, irregularly shaped fields. Some partially tillable tracts are rented for additional income but most tracts have a non-agricultural highest and best use. The presence of cropland, percentage tillable and productivity levels seem to have little effect on the overall value per acre for recreational tracts. Region 9 sales ranged for $1,000 to $5,200 per acre in 2015, with an average of $3,125 per acre.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcClark Jan 80.00 28.4 108.4 3,000Clay Jan 20.00 47.9 110.8 2,625Crawford Jan 29.12 62.2 106.8 3,434Richland Feb 34.00 33.1 129.8 2,353Lawrence Feb 61.50 71.8 106.5 4,098Clark Mar 20.00 62.6 102.8 4,500Crawford Apr 40.00 22.8 108.2 3,000Wayne Apr 21.00 0.0 N/A 3,952Clay Apr 90.01 46.1 94.4 3,875Clark May 40.00 3,900Edwards May 67.00 31.5 94.0 3,433Clark Jun 40.00 16.8 111.5 3,050Crawford Jun 44.85 12.4 125.2 2,983Richland Jun 40.00 0.0 92.3 2,675Clay Jun 35.00 3,500Crawford Jul 36.34 18.1 110.9 3,000Clark Sep 60.30 3,192Clark Oct 213.00 39.1 114.8 3,604Cumberland Nov 15.00 46.3 96.7 2,667Edwards Dec 23.21 3,447Wayne Dec 84.44 52.3 112.1 2,939Marion Dec 32.21 62.9 101.3 4,905Average (acre weighted) 32.3 91.0 3,401

Transitional TractsThere has been little activity in the transitional land mar-ket in Region 9. The listed sale is across the road from a residential subdivision. Many have special incentives for development and all are interested in new residential and industrial projects.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcEffingham Dec 53.87 98.9 107.6 18,000

Other Tracts – BottomlandMost of the bottomland cropland in Region 9 is Class B or C soils. Pricing for these lands can vary due to flood protection, their location, ease of access and the potential for irrigation.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcFayette Jan 123.26 86.0 133.1 5,679Richland Mar 19.15 60.1 115.9 4,439Cumberland Mar 30.00 98.0 133.4 4,000Cumberland Apr 71.00 84.8 122.5 3,000Clark May 40.00 58.8 116.4 3,451Crawford Jun 60.00 56.0 124.7 2,917Wayne Jul 200.00 95.5 116.8 8,000Average (acre weighted) 83.8 123.0 5,578

Special Interestby Norbert Soltwedel

The 13 counties that make up Region 9 all lie south of the Shelbyville moraine formed by the Wisconsin glaciation period. The soils are more weathered with a clay pan that restricts water movement. As a result few soils are tiled and must rely on surface ditching for drainage. Soils have been formed under either native timber or prairie vegetation with organic matter under three percent. These soils have less water holding capacity than the darker soils of central Illinois, and tend to distinguish the geographical “Southern Illinois”. One of the most common “average” farm soils of the region is Cisne Silt Loam which has a productivity index of 109. Among farms in this region, another distinguishing trait is that they tend to include a higher amount of owned land in addition to rented land. Farm size averages 326 acres which is below the state average of 359 acres. A lower proportion of farm operators, 44 percent, are full time farmers compared to 50 percent for the state as a whole. Scattered throughout the region are many manufacturing plants whose employees include a large number of part time farmers. This diversification of non-farm income and the security of an owned base of land creates a strong local land market even when commodity prices are low. Small farms, soils with more variability in yields, and higher levels of land ownership have combined to encour-age livestock production. Traditionally these livestock enterprises have been small and involve multiple species, however in recent years, specialization is occurring. Con-fined beef feeding operations, wean to finish swine facili-ties, and new poultry barns, many of which are contract operations, are being built.

Many of these improvements fall under the Illinois Live-stock Management Facilities Act regulations requiring a notice of intent to construct. In the past two years, 44 such notices have been filed from Region 9. The largest number has been for 25 new and expanded swine facilities with poultry having 9 such filings with the IL Department of Agriculture. These units are sometimes controversial with neighbors, but provide employment opportunities, an increased tax base, and an important source of organic fertilizer to improve soil quality.


REGI

ON

9


--- Category ---

Year Good Average Fair Recreational Transitional2001 2,288 1,779 1,018 887 2002 2,814 1,812 1,667 1,082 7,354 2003 2,850 1,895 1,700 1,128 5,547 2004 2,932 2,176 1,934 1,391 7,108 2005 2,567 2,651 1,847 1,707 11,010 2006 2,741 2,386 1,755 2007 3,472 3,267 3,175 2,298 19,464 2008 4,352 3,852 3,186 3,711 2009 5,625 4,016 2,979 2,304 5,369 2010 4,888 4,862 3,965 2,527 7,467 2011 7,141 6,302 4,997 3,052 8,750 2012 9,300 6,164 4,838 2,639 9,574 2013 9,401 7,860 5,895 2,968 16,323 2014 9,684 7,173 6,267 3,871 2015 7,194 7,416 4,905 3,370 18,000 Continuously Compounded Annual Growth Rate (CCAGR) - selected periods

2001-2008 9.19% 11.04% 16.31% 20.44% 2008-2015 7.18% 9.36% 6.16% -1.38% 2001-2015 8.18% 10.20% 11.24% 9.53% 2005-2015 10.31% 10.29% 9.77% 6.80% 4.92%2010-2015 7.7% 8.4% 4.3% 5.8% 17.6%2014-2015 -29.7% 3.3% -24.5% -13.9% * (Note: Limited numbers of sales in some years and special features may affect values)

The other defining characteristic of this region is the existence of oil production. Oil wells are found in all 13 counties. Oil rights have often been separated from the surface rights with royalties going to absentee owners. Oil wells, utility lines and lease roads may actually detract from surface land values. Many wells are being water flooded to produce oil and fracking is on the horizon as soon as prices rise to adequately reward the investors. Land is often sold with all or a portion of the mineral rights withheld by the seller and these mineral rights are sold between investors and landowners in separate transactions. The value of these rights obviously reflects the likelihood of “striking oil” or the current royalty being received. Capitalization rates tend to be quite high on this income due to the risk involved in continued production.



Excellent Productivity 250 275 300 2 years 275 30 20 50 Good Productivity 225 250 275 2 years 240 30 20 50 Average Productivity 160 200 225 2 years 185 30 20 50 Fair Productivity 125 150 175 2 years 160 30 20 50 Recreational Land N/A N/A N/A N/A N/A N/A N/A N/A Pasture N/A N/A N098/A N/A N/A N/A N/A N/A Other: Bottomland 130 155 200 2 years 155 20 40 40

Lease TrendsMany farms in Region 9 lease at a fixed cash rent. The farm operators will sometimes pay a bonus when they have a good year. The recent decline in grain prices has had an adverse effect on the operators’ cash flow, so these bonus payments were probably less in 2015.

Bottomland often has a risk of flooding. Some of the cash rent contracts have a Spring and Fall payment with the Fall payment paid if the crops were not destroyed by flooding


REGI

ON

10

Phil Eberle – ChairCarbondale, IL

Brett Berger, ARA Berger Appraisal, Albion, IL

Tom HarmonHarmon Appraisal Service, Shawneetown, IL

Doug Healy, ARAFarm Credit Illinois, Marion, IL

Todd HortinFarm Credit Illinois, Marion, IL

Roger RaubachRaubach Appraisal Service, West Frankfort, IL

Matt St. LedgerFarm Credit Illinois, Mt. Vernon, IL

The volume of sales across all productivity ranges in-creased over 2014 in Region 10. Average productivity

tracts, the largest single classification area in Region 10, increased in value over 2014. Region 10 breaks average productivity tracts into two groups, Area 1 and Area 2. Both groups had positive increases in value over 2014 values. Part of the increase in average value for Area 2 was better quality tracts in terms of tillable acres in 2015 compared to 2014. However, values for the other land classification declined from 2014 values, which met the expectations of the committee. Good productivity tracts, the smallest productivity classification area in the region, declined in value. The exact magnitude of decline is dif-ficult to infer because of limited sales (6 transfers), and differences in location, tract size and tillable acres. Fair and recreational tracts declined in value, 4% and 10%

respectively. The majority of buyers for the other than recreational tracts are farmers. The sellers are primarily retiring farmers or estates. Transfers were primarily private sales. Auction sales are not common in Region 10. The 2015 results suggest that farmers were still willing to pay as much or more for the more typical average class land, but less willing to pay more for the good and fair tracts compared to prior years.

Cash rents and lease types varied considerably across the region. Reported rents appeared to be steady for 2015. The committee reported a range of rents rather than report a typical rent value by land class. It is difficult to quantify the percentage change in cash rents in region 10 because of several factors. Crop share leasing represents a large share of leases in the area. The variability in soil productivity

Region 10 - Southern


Total Value % Change Change in rate Avg. Cash Rent % Change Avg. Cash Rent/Ac. Per Acre in $/Acre from of land Per Acre from on recentlyFarm Classification (Typical) prior year turnover typical in region prior year negotiated leases Good Productivity $7,760 down up $170-$200 steady no changeAverage Productivity $7,820/$5,270 up/up up $135-$165 steady no changeFair Productivity $4,090 down 4% up $100 -$135 steady no changeRecreational Land $2,561 down 10% up


and terrain results in variability of lease rates, and our lim-ited sample of leases does not control for this variability. Region 10 lease data is obtained from the reports of ten-ants rather than landowners because region 10 committee members are not directly involved in lease negotiations. Lease types also vary by class of land with lower produc-tivity land more likely share rented and higher productivity land cash rented. Indications are that cash lease rates will remain unchanged for 2016, despite the outlook for lower commodity prices, because of strong competition among tenants to keep or add land.

Good Productivity TractsThe sales of good productivity tracts compose a small portion of sales in region 10. Good quality land tracts are located primarily in northern and eastern White County, northern Gallatin County, northern Saline County, and in the levee protected bottoms of the Mississippi River in Jackson and Union County. A comparison of average price, weighted average price or range of prices would suggest 2015 prices are lower than previous years, but the small number of transfers each year preclude a definitive state-ment on the magnitude of such trend. The average sale price for the good productivity tracts for 2015 was $7,756 compared to $9,800 in 2014 and $9971 per acre in 2013.

On an average weighted price per acre, 2015’s value of $7,220 is down from $8,600 in 2014 and $10,200 in 2013. A first glance at the four sales listed for good productivity tracts might suggest the White County sale of $10,445 is an outlier, but note if the Jackson County price is adjusted for its low percentage of tillable acres its price would be near the White County price. The committee concluded that the trend in price of good productivity land is down, but caution that a comparison of the reported value for 2015 with past values may reflect other characteristic dif-ferences other than time, which cannot be discerned due to so few transfers.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcGallatin Apr 203.68 92.7 122.0 6,000White May 80.00 97.4 120.1 10,445Jackson Nov 305.35 71.5 120.6 7,080Saline Nov 120.00 96.5 120.9 7,500Average (acre weighted) 84.7 121.0 7,221

Average Productivity TractsAverage productivity tracts are the most common qual-ity of crop production farms found in Region 10 typically accounting for about half of all transfers, but for 2015 average land class share accounted for only 35 percent of transfers and 34 percent of acres transferred, which is still more than any other land class in Region 10. The majority of the buyers of these farms are area farmers purchasing land to expand their current farming operations. The sellers are mostly estates and their beneficiaries and retiring farm-

ers. Activity in terms of bona fide arm’s length transactions increased in number of sales and acres transferred com-pared to 2014.

Observed sales of this quality of farm were in a wide price range from $3,000 to $9,550 per acre. In past years, the committee reported a differentiation between prices observed from the general area and from stronger farm-ing and sales “pockets” scattered throughout the region. The 9 sales from the typically stronger sales areas (Area 1) ranged in values from $6,738 to $9,550 with an aver-age of $7,816 per acre. The 2015 average price and price range increased over the 2014 price average of $6,742 and price range from $6,000 to $8,000. A comparison of price weighted by acres also indicates an increase from $6,523 in 2014 to $7,837 for 2015.

The 36 sales from the sale area classified as Area 2 had a price range from $3,000 to $7,950 with an average price $5,270 for 2015. The sample of prices in Area 2 demon-strate an increase as compared to 2014 which had a price range from $2,950 to $6,000 with an average of $4,439 per acre. A comparison of price weighted by acres also indi-cates higher prices for 2015, $5,172 compared to $4,559 in 2014. The increase in price for area 2 tracts is partially explained by differences in percent tillable. Area 2 2015 tracts averaged 89 percent tillable compared to 78 percent tillable in 2014.

For Region 10 using alternative measures of price compar-ison between 2015 and 2014 consistently showed higher prices for average productivity tracts in 2015. These results are different from last year’s comparison of between 2014 and 2013 where some results indicated an increase and others a decrease. Despite low crop prices, buyers in 2015 were willing to pay as much or more for average produc-tivity tracts compared to 2014.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcArea 1 Jackson Jan 61.61 100.0 100.9 7,669Jackson Jan 80.00 90.1 101.9 7,290Jackson Apr 131.00 81.6 100.3 6,790White May 230.04 56.9 102.4 6,738White May 160.00 98.4 103.4 9,550White Jun 160.00 85.0 113.6 9,450Jackson Nov 168.35 83.0 116.6 7,627Saline Nov 79.80 96.2 104.0 7,469Jackson Nov 311.58 83.6 104.8 7,763

Area 2 Saline Jan 120.00 93.3 103.7 5,000Saline Jan 20.00 86.1 106.0 3,000Jackson Feb 46.72 64.4 103.3 3,596Franklin Mar 18.70 98.9 107.2 5,171Jackson Mar 75.42 94.3 103.0 5,569White Mar 100.00 93.8 101.1 5,000White Apr 40.00 94.5 102.6 5,286


REGI

ON

10

Saline Apr 159.00 92.1 101.7 4,245Pulaski Apr 125.00 80.0 113.9 6,309Massac Apr 100.00 85.1 111.8 4,000Pulaski May 281.00 79.5 103.2 3,750Jefferson May 110.00 99.1 100.5 5,500Jefferson May 54.66 84.0 101.8 5,500Pope Jul 116.00 90.9 107.7 3,724Hamilton Jul 20.00 79.1 109.3 3,775Massac Jul 208.06 84.3 108.1 3,551White Jul 108.69 86.1 109.3 4,830White Aug 40.00 78.1 107.6 4,300White Sep 102.00 92.1 106.4 6,373Saline Sep 40.00 100.0 101.4 5,000Saline Sep 39.24 97.3 110.5 5,000White Oct 60.00 95.6 99.3 7,000Hamilton Oct 20.00 100.0 109.5 7,950White Oct 79.18 86.5 100.2 6,618Alexander Nov 73.00 98.9 104.7 5,800Perry Jan 40.00 90.6 99.7 6,500Perry Mar 18.52 94.5 101.8 5,496Perry Apr 20.00 100.0 108.4 6,250Perry Apr 54.44 87.4 101.9 5,000Perry May 40.00 79.7 115.7 3,000Perry May 27.62 68.8 101.0 5,300Perry May 40.00 97.3 105.8 6,000Perry May 171.00 95.3 102.6 7,556Perry Oct 78.00 91.0 104.4 6,850Perry Oct 116.63 81.3 106.4 6,932Perry Nov 40.00 91.9 106.9 5,000Average (acre weighted) 86.5 105.3 6,052

Fair Productivity TractsMany of the fair productivity tracts in addition to a lower soil productivity index as compared to average productiv-ity farms have a lower percentage of tillable acres. The average percentage of tillable acres was 84 percent for fair productivity tracts compared to 93 percent for area 1 tracts and 89 percent for area 2 tracts of average productivity.

Fair productivity tracts often have value for recreational uses in addition to crop value. The buyers of the higher cropland percentage farms are mostly local farmers while the buyers of the lower percentage cropland farms are more likely to be recreational buyers, or investors planning to sell to recreational buyers.

The sellers are mostly retired farmers and estates. These farms typically have sloping topography and/or weak soil types. The volume of sales and acreage transferred has increased from 2014. Price ranges were comparable between 2015 and 2014. Prices ranged from $2,323 to $7,550 in 2015 slightly lower and higher than range from $2,632 to $7,000 in 2014. Average price of $4,091 in 2015 was down from $4,252 in 2014 by less than 4 percent. Average price weighted by acres was also down $3,959 in 2015 compared to $4,203 for 2014, a 5.8 percent decline. Overall prices for fair productivity tracts trended slightly downward from 2014.



Marion • [email protected]

Mt. Vernon • [email protected]

Shanda McCroryAppraiser

Doug Healy Appraiser


Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcHamilton Jan 20.00 99.8 85.4 5,000Pope Jan 117.50 82.0 96.8 2,489Jefferson Jan 78.00 56.2 98.3 3,641Hamilton Jan 40.00 79.3 94.0 2,500Williamson Jan 132.37 96.5 95.6 5,750Williamson Jan 80.00 83.9 88.9 3,300Hamilton Jan 40.00 87.3 97.9 3,900Williamson Feb 30.71 84.1 82.5 4,396Saline Feb 20.00 80.8 91.1 4,000Williamson Mar 24.47 95.1 78.8 3,016Jackson Mar 313.00 86.0 86.0 4,000Johnson Mar 43.00 77.5 93.8 2,791White Apr 300.00 91.2 86.6 3,500Jackson Apr 40.00 100.0 96.7 7,550Pope May 31.00 82.6 91.6 2,323Hamilton May 40.00 65.6 92.8 2,800Williamson Jun 233.00 84.5 94.0 4,000Jefferson Jun 80.00 92.1 88.8 4,500Hamilton Jun 20.00 64.0 86.8 4,200Jefferson Jun 26.50 90.6 88.7 4,377Jefferson Jun 40.00 86.9 93.0 4,125Jefferson Jun 40.00 74.1 98.7 7,000White Jul 177.00 84.8 100.0 4,379Jefferson Jul 40.00 72.9 96.6 4,125Jefferson Jul 77.40 95.2 93.1 5,254Hardin Aug 150.00 86.4 94.4 3,500White Sep 80.00 86.9 89.1 5,438Williamson Sep 36.00 95.8 92.4 4,500Hamilton Oct 39.74 94.6 89.8 4,125Williamson Oct 24.00 84.1 85.4 3,300Hardin Oct 70.00 85.6 85.2 2,857Williamson Oct 140.00 86.6 99.8 3,429Franklin Oct 42.00 81.2 90.2 4,500Hamilton Nov 70.00 77.8 94.1 4,500Hamilton Nov 65.00 71.4 88.8 4,000Hamilton Nov 96.00 88.3 91.6 2,500Hamilton Nov 88.00 90.3 95.5 4,000Hamilton Nov 164.25 72.3 95.9 2,700Gallatin Dec 25.00 98.2 94.3 4,364Williamson Dec 24.47 95.1 78.8 3,208Perry Mar 30.00 55.5 90.1 4,367Perry May 20.00 66.2 94.7 4,750Perry Jun 54.00 90.6 98.6 4,722Perry Sep 62.72 84.6 95.2 5,069Perry Oct 38.30 99.2 95.8 5,350Average (acre weighted) 84.8 92.4 3,959

Recreational Tracts

For 2015, recreational sales composed 26 percent of all sales analyzed and 27 percent of all acres transferred in Region 10. Many of the sales of recreational tracts in the region are through realtors to recreational buyers where in the past these tracts were purchased by farmers for agricultural pur-poses. The primary recreational use for these properties is deer hunting. Most of these tracts consist of a combination of low quality open land (cropland, pasture, and other open land) and wooded areas. The 33 recreational sales analyzed for 2015 were comparable to the 26 tracts analyzed in

2014 in size of tract and percent tillable. Average tract size was 117 acres for 2014 and 99 acres in 2015. The average percent tillable (acre weighted) was 23 percent in 2014 and 22 percent in 2015. Thus differences in price between 2014 reflect time factor and other factors not accounted for in the comparison. Prices for 2015 ranged from $1,000 to $4,000 with an average sale price of $2,561, and a price weighted by acres of $2,391. Recreational sales for 2014 had a similar price range from $950 to $4,000, but had a higher average price of $2,840 and a higher weighted acre price of $2,451 in 2014. Based on the transaction average and acre weighted average, price of recreational tracts were down in 2015 by 3.5 percent to 9.8 percent respectively.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcJohnson Jan 29.00 0.0 1,897Pope Feb 60.00 18.8 2,667Hamilton Feb 41.00 0.0 3,000Hamilton Feb 86.37 47.3 88.8 2,840Johnson Feb 30.00 0.0 2,733Hamilton Feb 20.00 0.0 2,200Pope Feb 264.97 25.4 87.7 2,418Hamilton Mar 122.28 0.0 2,679Hamilton Mar 20.00 0.0 2,800Hamilton Mar 20.00 0.0 2,800Jefferson Mar 40.00 0.0 3,400Pope Mar 120.00 0.0 1,912Johnson Apr 360.00 4.4 2,500Hamilton Apr 40.00 52.3 87.8 3,429White Apr 62.50 52.7 111.1 2,790Johnson May 40.00 43.8 88.2 3,000Hamilton May 100.00 0.0 2,970Pope May 220.00 41.5 93.7 2,500Franklin May 50.00 2.5 109.8 3,950Gallatin Jun 142.00 14.3 139.9 2,465Pope Jun 310.00 54.6 83.1 2,200Pope Jul 73.34 20.2 3,000Pope Jul 123.24 30.6 94.0 3,000Johnson Aug 61.28 6.5 2,162Williamson Sep 35.00 42.1 91.9 4,000Hamilton Nov 75.50 46.2 95.5 2,000Hamilton Nov 120.00 36.2 103.9 1,900Hamilton Nov 174.24 0.0 1,000Hamilton Nov 73.25 0.0 2,100Hamilton Nov 163.48 45.6 83.7 1,900Hamilton Nov 111.50 2.5 98.8 1,850Hamilton Nov 43.56 0.0 1,900Average (acre weighted) 22.1 54.4 2,392

Transitional Tracts

In past years, Region 10 has not reported transitional sales, but this year there was an occurrence of a coal mine expan-sion. In the northeast corner of Franklin County, the Akin Mine purchased 1,000 acres of farmland tracts to expand a surface coal mine operation. These tracts were predomi-nantly of average productivity. The prices received are more comparable to Area 1 average tracts. It also appears that the latter transactions during the year received the higher prices.


REGI

ON

10


--- Category --- Year Good Average Fair Recreational2001 2,319 1,564 1,028 891 2002 2,738 1,610 1,085 2003 2,804 1,597 1,138 1,157 2004 2,334 1,776 1,190 1,413 2005 2,763 1,866 2,050 1,615 2006 2,928 2,204 1,762 1,815 2007 4,146 2,283 1,742 2,044 2008 4,698 2,724 2,218 2,380 2009 4,782 2,994 2,240 2,443 2010 6,576 3,314 3,029 2,346 2011 7,855 3,915 3,177 2,247 2012 9,452 5,078 3,555 2,483 2013 9,971 5,643 4,193 2,702 2014 9,800 5,256 4,249 2,967 2015 7,756 5,779 4,091 2,561 Continuously Compounded Annual Growth Rate (CCAGR) - selected periods

2001-2008 10.08% 7.92% 10.98% 14.05%2008-2015 7.16% 10.74% 8.75% 1.05%2001-2015 8.62% 9.33% 9.86% 7.55%2005-2015 10.32% 11.30% 6.91% 4.61%2010-2015 3.3% 11.1% 6.0% 1.8%2014-2015 -23.4% 9.5% -3.8% -14.7%* (Note: Limited numbers of sales in some years and special features may affect values)

In addition to these direct purchases listed above for mine expansion, there were other transactions of the coal mine buying farmland then trading out for farmland for expan-sion. Farmers who sold land to the coal mine were then in the market to buy farmland to replace lost acreage. These events have led to a strong demand for farmland in northeast Franklin County with farmers seeking farmland that is not on the market.

Sale Total % P/I on $ TotalCounty Date Acres Tillable Tillable Ac Price/AcFranklin May 379.00 81.6 103.2 5,106Franklin Apr 75.00 99.0 99.3 6,000Franklin Aug 60.00 78.9 98.0 7,250Franklin Aug 60.33 93.2 108.9 6,481Franklin Jul 121.69 89.6 99.1 6,100Franklin Jul 118.00 88.8 101.9 6,093Franklin Jun 80.00 84.0 103.4 6,095Franklin Aug 60.00 7,250Average (acre weighted) 80.5 95.8 5,865


Leasing Trends Typical Existing Cash Rental Rates for: Percentages of NEW leases that are: Avg. Most representative Lowest Middle Top Length rate on NEW cash 1/3 1/3 1/3 of Lease lease in area Flexible Farm Classification by rate by rate by rate Contract for 2015 crop year Cash Cash Share Other Good Productivity 150 185 210 1-3 years no change 65 12 23 Average Productivity 125 150 175 1-3 years no change 60 5 35 Fair Productivity 90 115 140 1 year no change 35 65 Recreational Land 3 6 10 1 year Pasture 20 30 40 1 year

Lease TrendsRegion 10 is not experiencing much change in the rental marketplace. There is discussion of lowering rates, but very little movement in that direction. Some anecdotal evidence of base rents in flex leases being lowered. Tenants do not appear to have appetite to negotiate with landlords. Leased land is not changing hands except for retiring farmers or farmers exiting the business.

A majority of region 10 leases are still share leases especially for less productive tracts. One new share lease had landowner receiving 1/3 the crop, but paying none of the farm operation expenses. There does appear to

be a trend toward shorter lease terms. There are fewer 5 year leases as leases move to 1 to 3 years on the higher productivity classes. Leases of one year are more common on less productive land classes.

Recreational lease rates reported in the table indicate payment for transfer of hunting rights only with other use rights remaining with owner or tenant.

Other lease observation for the region are that pasture rents increased slightly for 2015 due to higher cattle prices and cash rents on irrigated land range from $225 to $280 an acre.


Farmland Price Decline Expected to ContinuePrepared by Gary Schnitkey, Ph.D., University of Illinois Department Ag and Consumer Economics

The Illinois Society of Professional Farm Managers and Rural Appraisers conducts an annual survey in which it asks knowledgeable individuals

about the farmland market. Respondents indicated that farmland prices decreased in 2015 by about 8 percent. Expectations are for decreasing farmland prices in 2016. Yields in 2016 along with resulting prices will have an impact on the direction and magnitude of farmland price changes. Respondents believe that above-average yields could lead to falling commodity prices and lower farmland prices while below-average yields could lead to increases in prices for commodities and farmland.

Land Prices Decreased in 2015Respondents were asked to estimate farmland prices on January 1, 2015 and December 31, 2015 for the following farmland quality classes:

1. Excellent (expected corn yields over 190 bushels per acre), 2. Good (expected corn yields between 170 to 190 bushels per acre), 3. Average (expected corn yields between 150 to 170 bushels per acre), and 4. Fair productivity farmland (expected corn yields less than 150 bushels per acre).

Price of excellent productivity farmland was estimated at $12,600 per acre price on January 1 and $11,600 per acre price on December 31st, a decrease of 8 percent during the year (see Table 1). Good quality farmland price was estimated at $10,500 at the beginning of the year and $9,700 at the end of the year, a decrease of 8 percent. Average farmland price was $8,500 per acre at the beginning of year and $7,700 at the end of year, a decrease of 8 percent. Fair productivity price was $6,500 at the beginning of the year and $6,000 at the end of the year, indicating a price decrease of 8 percent.

Expectations for 2016In total, 84 percent of the respondents expect farmland values to decrease during 2016 (see Figure 1). Thirty-one percent of respondents expect values to decrease between

Table 1. Estimates of Land Price, Beginning & Ending of 2015 Date Percent Productivity Jan. 1, 2015 Dec. 31, 2015 Change $ per acre Excellent 12,600 11,600 -8% Good 10,500 9,700 -8% Average 8,500 7,700 -9% Fair 6,500 6,000 -8%

0 and 5 percent, while fifty-three of respondents expect declines between 5 and 10 percent, and seven percent expected decreases of more than 7 percent. Only four percent of respondents expect farmland values to increase in 2016.

Respondents were asked what the chances were of a 20 percent decline in farmland prices during 2016. This question gauges the sentiments of respondents concerning a large downward correction in prices. Only four percent of the respondents believed there was no chance of a 20 percent farmland price decrease with thirty-one percent indicating they believed there to be a very small chance of a 20 percent farmland decrease. Thirty-two percent of respondents believed there was less than a 5 percent chance, thirty percent believed that the chance is between


5 to 10 percent chance, and three percent believed there was more than a 10 percent chance of a large price decrease. (see Figure 2). Overall, most individuals believe the chance of a large land price decreases are small, although more individuals believe that large farmland price decreases are now possible. In the 2015 survey, seventy-eight percent of respondents believed there was no or small chance of a 20 percent farmland price decrease in 2015, compared to 35 percent in the 2016 survey concerning 2016 farmland prices.

Factors Impacting 2016 Price Outlook

Respondents were also asked questions regarding funda-mental factors impacting farmland prices among the following categories:

Agricultural Economy: Respondents were asked whether they expected the agricultural economy to expand or contract. Ninety-one percent of respondents expected the economy to contract modestly while 5 percent expected a full-scale recession. Four percent expected the economy to expand. A contract agricultural economy would be expected to have a negative impact on farmland prices.

Interest Rates: Most respondents expect interest rates to increase in 2015, with 77 percent expecting those increases to be less than 1.5 percentage points and 2 percent expecting interest rate increase of over 1.5 percentage points. Rising interest rates would be expected to have a negative impact on farmland prices.

Corn Prices: Respondents were asked for their expec-tations for average corn prices in 2016. Seventy-nine percent expect prices between $3.50 and $4.00 per bushel. Fifteen percent expected corn prices between $3.00 and $3.50. Overall, 94 percent of respondents expected corn price to average below $4.00 per bushel and the remain 6 percent of respondents expected prices between $4.00 and $4.50 per bushel.

Respondents were given a set of factors and asked to indicate which of these factors would cause farmland prices to decrease by more than 5 percent in 2016 if that factor occurred. “Falling commodity prices because of good 2016 growing conditions in the United States” was indicated by 91 percent of the respondents as leading to farmland price decreases (see Table 2). The next factor indicated by most respondents was “increases in interest rates”, indicated by 79 percent of respondents. Factors indicated by over 50 percent of respondents as leading to farmland price decreases were: “good crop yields in South America” (67 percent of respondents) and “elimination of ethanol mandates (61 percent).

Table 2. Factors that Could Cause a Farmland Decrease of More than 5% in 2016 % of Respondents1

Falling commodity prices because of good 2016 growing conditions in the U.S. 91%Increases in interest rates 79%Reduction in commodity demand because of slowing Chinese growth 72%Good crop yields in South America 67%Elimination of ethanol mandates 61%General economic recession in the United States 39%Changes in exchange rate 18%Recession in Europe 16%Decrease in stock prices 16%Decreased variability in stock prices 16%Increased variability in stock prices 14%2016 drought causing low yields 11%Increases in stock prices 11%Good economic growth in the United States 7%

1 This is the percent of respondents that indicated that this factor, if it occurred, would cause a more than 5% farmland price decline. For example, 91% of the respondents indicate that ‘falling commodity prices because of good 2016 growing conditions...” would cause farmland price decrease.

From that list of factors, respondents were asked to choose the most likely factor leading to a farmland price decrease. Respondents were only allowed to choose one factor. The most chosen factor was “falling commodity prices because of good 2016 growing conditions”, ranked as the most likely factor by 73 percent of the respondents Other factors ranked as the most likely factor were: “increases in interest rates (17 percent of respondents), “reduction in commodity demand because of slowing Chinese growth” (4 percent), “elimination of ethanol mandates” (4 percent), and “general economic recession in the United States” (2 percent).

Table 3. Most Likely Factor that Could Cause a Farmland Decrease of More than 5% in 2016 % of Respondents1

Increase in commodity prices because of poor 2016 growing conditions in the U.S. 73%Increase in interest rates 17%Reduction in commodity demand because of slowing Chinese growth 4%Elimination of ethanol mandates 4%General economic recession in the U.S. 2%

Besides farmland price decreases, respondents were asked to rank what factor could cause farmland prices to increase by more than 5 percent in 2016 (see Table 4). “Increases in commodity prices because of poor growing conditions in the United States” received the most positive responses at


58 percent of respondents. A 2016 drought was next with 49 percent of respondents.

Table 4. Factors that Could Cause Farmland Prices to Increase More than 5% in 2016 % of Respondents1

Increase in commodity prices because of poor 2016 growing conditions in the U.S. 58% 2016 drought causing low yields 49%Poor crop yields in South America 40%Good economic growth in the United States 34%Increases in commodity demand because of slowing Chinese growth 27%Changes in exchange rate 27%High yield leading to higher incomes 25%Increased variability in stock prices 22%Decreases in stock prices 20%Fear of Federal deficit issues in the future 9%General economic recession in the United States 5%Increases in stock prices 4%Decreased variability in stock prices 4%Decreases in interest rates 2%Recession in Europe 2%

1 This is the percent of respondents that indicated that this factor, if it occurred, would cause a more than 5% farmland price increases. For example, 58% of the respondents indicate that ‘increase in commodity prices because of poor 2016 growing conditions...” would cause farmland price increase.

From this list of factors, respondents were asked to choose the most likely factor to cause a farmland price increase of more than 5 percent. Increases in commodity prices because of poor 2016 growing conditions in the United States” was the factor chosen by most respondents, receiving 44 percent of the response. A 2016 drought was indicated by 21 percent of respondents. These two top responses were ranked by 65 percent as having the most likely chance of increasing price and both relate to poorer yield in the United States.

Table 5. Most Likely Factor to Cause a Farmland Price Decrease of More than 5% in 2016

Increase in commodity prices because of poor 2016 growing conditions in the U.S. 44% 2016 drought causing low yields 21%Increases in commodity demand because of slowing Chinese growth 8%Poor crop yields in South America 7%Good economic growth in the United States 8%High yield leading to higher incomes 4%Decreases in stock prices 4%Decreases in interest rates 2%Changes in exchange rate 2%

The listing of both positive and negative factors suggest that a majority of respondents believe that yields will have

some impact on farmland prices. High yields could lead to lower prices which would have a negative impact on farmland prices. Conversely, low yield could lead to higher prices which would have a positive impact on farmland prices.

Sellers of Farmland

Survey respondents were asked to divide sellers of farm-land into the following six categories: active farmers, retired farmers, estate sales, institutions, individual investors, and others. Estate sales accounted for 54 percent of the sales and were, by far, the largest category of sellers (see Table 6). Estate sales were followed by farmers who made up 24 percent of sellers. Ten percent of those farmers were retired and 14 percent were active farmers. Individual investors accounted for 12 percent of the sellers, followed by institutions (7 percent) and others (3 percent).

Table 6. Sellers of Farmland, 2015. Active farmers 10% Retired farmers 14% Estate Sales 54% Institutions 7% Individual investors 12% Others 3%

Survey respondents were asked to identify reasons why farmland was sold. The major reason for selling farmland was to settle estates, accounting for 48 percent of the farmland sales (see Table 7). “Receiving a good price for farmland” was the next highest reason with 17 percent of the sales. Remaining reasons were re-orient investment portfolio (13 percent), close-out undivided interest (9 percent), need cash (8 percent), and forced liquidation (5 percent). Overall, percentages shown in Tables 7 and 8 vary little across years. For example, estate sales make up the largest category of sellers for the last several years of the Illinois survey.

Table 7. Reasons for Selling Farmland, 2015. Settle Estates 48% Need cash 8% Forced liquidation 5% Received a good price 17% Re-orient investment portfolio 13% Close-out undivided interests 9%

Respondents were asked to indicate what the funds from the farmland sale were used for (see Table 8). Respondents indicated that 53 percent of funds were used to disburse estates. The second highest use was for personal purposes (15 percent). Twelve percent were used to pay down debt and 12 percent were used to invest in non-agricultural assets. Eight percent of the funds were used to reinvest in other assets.


Table 8. Use of Funds from Farmland Sales Disburse Estates 53% Pay down debt 12% Reinvest in other ag real estate 8% Invest in non-ag assets 12% Use for personal purposes 15%

Methods used for selling farmland are shown in Table 9. Forty-five percent of parcels were sold by public private treaty, 35 percent by public action, 14 percent by multi-parcel auction, and 6 percent by sealed bid. Between 2014 and 2015, the private treaty method of sales has increased in use while the use of public auctions has decreased. Table 9. Method of Selling Farmland, 2015. Sealed bid 6% Multi-parcel auction 14% Public auction 35% Private treaty 45%

Buyers of FarmlandSurvey respondents were asked to classify buyers into categories as farmers, investors, institutions, or recreational buyers. Farmers accounted for 63 percent of the purchasers, with 60 percent being local farmers and 3 percent being relocating farmers (see Table 10). Individual investors who would not farm the land were the next largest group, accounting for 18 percent of the buyers. Non-local investors accounted for 5 percentof the buyers and local investors accounted for 15 percent. Institutions accounted for 12 percent of buyers. Survey respondents indicated that 53 percent of farmland buyers did not require debt financing. On average, 53 percent of the purchase price was financed for those buyers requiring debt financing. There has been an increase in interest in farmland investing from outside the agricultural sector. Thirty-seven percent of respondents indicated that outside interest has increased. As of yet, this interest has not resulted in a large change in percentages in the “buyer of farmland” categories.

Table 10. Buyers of Farmland, 2014. Local farmers 60% Relocating farmers 3% Non-local investors 5% Local investors 15% Institutions 12% Other 5%

Volume of Farmland Sold

Respondents indicated that there was a decrease in volume of sales during the last half of 2015 compared to the last half of 2013 (see Figure 3). Thirty-one percent of respondents indicated that volume decreased, with 26 percent indicating that there was “some decrease” increase in farmland volume. Fifty-six percent of respondents indicated that there was no change in volume, with 13

percent indicated that volume decreased.During 2013, 12 percent of the respondents indicated they expect volumes of sales to increase. Fifty-six percent expect no change in volume and 30 percent expect a decrease in volume.

Summary

Farmland prices decreased in 2015 due to lower agricultural returns. Expectations are for continuing decreasing into 2016. Most respondents expect those decreases to be in less than a 10 percent decrease.


The Illinois Society of Professional Farm Managers and Rural Appraisers conducts an annual survey of its membership concerning farmland leasing in

Illinois. Survey results indicate that income levels in 2015 from owning farmland were below 2014 levels, continuing a string of declining return years that began in 2013. Cash rents in 2016 decreased from 2015 levels, and expectations are for lower cash rents again in 2017. Even with lower cash rents, respondents expect very little farmland to change hands because the current farm operator is unwilling to pay the desired cash rent. Nor would it be difficult to find other farm operators to replace current operators if the need arises.

2015 IncomesSurvey respondents were asked to estimate average incomes landlords received from alternative leases for the 2015 cropping year. Average income is defined as gross revenue less all expenses, including a deduction for property tax. Alternative leases compared were:

1. Share rent leases -- landlord and farmer share in crop revenues and crop expenses, 2. Cash rent leases -- farmer pay the landlord a fee for the farmland. The farmer receives all crop revenue and pays all crop expenses.3. Custom farming arrangements – landlord pays the farmer for performing field operations. The landlord receives all crop revenue and pays all crop expenses.

Net incomes for 2015 are reported in Table 1 for four different land qualities:

1. Excellent (corn yields expected to be over 190 bushels per acre), 2. Good (corn yields expected to be between 170 to 190 bushels per acre), 3. Average (corn yields expected to be between 150 to 170 bushels per acre), and 4. Fair productivity farmland (corn yield expected to be less than 150 bushels per acre).

For Excellent quality farmland, traditional crop shares had average income of $204 per acre, cash rent had $263 per acre, and custom farming had $259 per acre. Across all land qualities, returns from share rent leases were lower than cash rent leases. Custom farming had the highest returns.

Table 1. Per Acre Farm Income that Landlords Receive for Different Lease Types and Land Qualities, 2015 Land Quality

Lease Type Excellent Good Average Fair $ per acreTraditional crop share 204 180 143 111 Cash rent 263 240 193 145 Custom farming 259 237 195 134

Incomes were lower in 2015. Table 2 shows incomes for 2015 income minus 2014 incomes. Negative numbers indicated incomes were lower in 2015 than in 2014. For excellent productivity farmland, traditional crop share income was $46 per acre lower in 2015 as compared to 2014. Cash rent income was $27 per acre lower, while custom farming income was $58 per acre lower in 2015 as compared to 2014.

Table 2. 2015 Incomes Minus 2014 Incomes

Land Quality

Lease Type Excellent Good Average Fair $ per acreTraditional crop share -46 -45 -35 -14 Cash Rent -37 -10 -7 -5 Custom Farming -58 -34 -27 -32

Cash Rents for 2016Table 3 shows per acre cash rents for the 2016 crop year. Cash rents are compared across the four different land quality classes of excellent, good, average, and fair quality. In each class, respondents were asked to give the average of rental arrangements with the highest 1/3 rents, mid 1/3 rents, and low 1/3 rents.

Table 3. Per Acre Cash Rents for High 1/3, Mid 1/3, and Low 1/3 Cash Rent Leases by Land Quality 2015

Land Quality

Lease Type Excellent Good Average Fair $ per acreHigh 1/3 350 300 260 208 Mid 1/3 325 283 247 190 Low 1/3 275 250 191 150

As shown in Table 3, there is a great deal of variability in cash rents for a given land productivity. For example,

Prepared by Gary Schnitkey, Ph.D., University of Illinois Department Ag and Consumer Economics

Drop In Cash Rent Levels Will Continue in 2016


the average cash rent for the mid 1/3 group on Excellent quality farmland is $325 per acre (see Table 3). The high 1/3 of leases, however, average $350 per acre, $25 higher than the mid 1/3 group. Similarly, the low 1/3 group average $275 per acre, $50 lower than the mid 1/3 group. From the high 1/3 group to the low 1/3 group, there is a $75 per acre difference in average rents for Excellent productivity farmland.

Similar ranges exist across Good ($50 from the high 1/3 to low 1/3 averages), Average ($69 per acre), and Fair ($58 per acre) quality farmland classes.

Cash rent levels decreased in 2015 (see Table 4). The $325 per acre cash rent for 2016 was $25 lower than the $350 per acre cash rent in 2014. Cash rents across all farmland classes fell: $28 per acre decrease for Good quality farmland, $27 per acre decrease for Average quality farmland, and a $19 per acre decrease for Fair quality farmland.

Table 4. History of Cash Rents for Mid 1/3 of Cash Rent Leases

Land Quality

Lease Type Excellent Good Average Fair $ per acre 2007 183 164 144 120 2008 241 207 172 138 2009 267 221 187 155 2010 268 231 189 156 2011 319 271 220 183 2012 379 331 270 218 2013 396 339 285 235 2014 375 323 277 2192015 350 295 250 2002016 325 283 247 190

Of the 2016 cash rent leases, respondents indicated that 60 percent of the rent levels were renegotiated from the previous year. Lower returns in 2015 could have resulted

in farm operators being unwilling to pay cash rents. This could lead to switching in farm operators. Farm managers were asked if they had farm operators unwilling to pay 2016 cash rent levels and leave the farm. Sixty-five percent of farm managers indicated that they had no operators unwilling to pay the cash rent level. Some modest amounts of switching occurred on the remaining 25 percent of farm managers: 10 percent of the farm managers indicated that one farm operator was unwilling to pay the cash rent and 25 percent indicated that less than 5 percent of farm operators were unwilling to pay cash rents. Overall, switching of farm operators appeared to be limited in 2016.

Expectations for 2017

Ninety-one percent of farm managers expect 2017 cash rents to be lower than 2016 cash rents (see Figure 2). Of those respondents expecting decrease, 41 percent expected decreases of between $25 and $50 per acre and 50 percent expected decrease between $5 and $25 per acre. Nine percent of respondents expected 2017 cash rents to remain the same as 2016 cash rents. None of the respondents expected rents to increase in 2017.

Respondents were asked what they expected to happen to productions costs in 2017. Production costs include fertilizer, seeds, and chemicals. All but 13 percent expect production costs to decrease in 2017 (see Figure 3). Forty-four percent expect decreases between $5 and $25 per acre, 34 percent expect decreases between $25 and $50 per acre, and 9 percent expect decreases over $50 per acre.

Given the expectations of a continuing low farm returns, there may be difficulties in having the current farm operators pay the asked for cash rent. Respondents were asked if they expected more farmers to refuse to pay asked for cash rent (see Figure 4). Forty-four percent of respondents expected no changes in refusals while 50


percent expected some increase and 3 percent expected a substantial increase in refusals.

Respondents were asked if they could find another farm operator if the current farm operator refused to pay the desired cash rent, given that the replacement farm operator paid the same rent in 2017 as in 2016. The question was asked assuming that corn prices remained below $4.00 per bushel. Sixty-four percent of respondents indicated that they could find many operators. Twenty-nine percent indicated that would have difficulty in finding a replacement operator and 6 percent indicated that they could not find a replacement farm operator.

Respondents were asked if more of their land owners were considering selling farmland as a result of lower farmland returns. Ninety percent of respondents indicated that their farm owners were not considering selling farmland.

Leasing Arrangements Used in 2016Figure 5 shows lease arrangements used by farm managers. In Figure 5, the first three lease types relate to

crop share leases in which the land owner and tenant share in the revenues and expenses from the farm. A traditional crop share lease has a simple sharing arrangement of revenue and direct expense, with a common split in northern and central Illinois being 50 percent. In a crop share with supplemental rent arrangement, the land owner and tenant share in revenues and direct expenses, and the tenant pays an additional cash payment to the land owner. This additional cash payment often is called a supplemental rent. According to survey respondents, the supplement rent averaged $28 per acre in 2016. A share rent with other modifications arrangement is another type of share lease that modifies payments between the land owner and tenant. One typical modification is that the tenants pay all of the chemical costs.

Share rent leases accounted for 42 percent of the leases in 2016, with traditional crop share accounting for 25 percent of the leases, crop share with supplemental rents accounting for 11 percent of the leases, and crop share with supplemental

accounting for 6 percent of the leases (see Figure 5).

There are two types of cash rent leases: traditional and variable. Under a traditional lease, a fixed amount of cash rent is negotiated between the land owner and tenant, typically at the beginning of the cropping year. Under a variable lease, the amount of the cash payment depends on revenue. A typical variable lease has a fixed base payment and then a “bonus” payment. The bonus payment is a percentage of gross revenue when gross revenue exceeds a specified level. In 2016, traditional crop share arrangements accounted for 31 percent of leases while variable cash leases had a 20 percent share of leases (see Figure 2). Farm managers typically use short lease terms on cash rental arrangements. Of cash rents, 86 percent of the leases were one-year in length

Custom farming is an arrangement in which the land owner pays a farmer to perform machinery related operations on the farmland. The land owner then receives all revenue and pays all direct expenses from the farm. Custom farming accounted for 9 percent of leases.


Summary

Cash rents increased between 2006 and 2013. Since 2014, cash rents have decreased and expectations are for continuing decreases into 2017. These decreases are the result of lower corn and soybean prices that have occurred beginning in the fall of 2013. Lower commodity prices then cause lower agricultural returns. In the end, lower agricultural returns will lead to lower returns to farmland owners.


Interest Rates in Agiculture -- Historic Values and Prospects for the Future

Prepared by Bruce J. Sherrick, Ph.D., Fruin Professor of Farmland Markets, and Director TIAA Center for Farmland Research, University of Illinois

Shortly after the beginning of the housing-related financial crisis, the Federal Reserve Open Market Committee (FOMC) established a target rate for

overnight Fed Funds of effectively 0 percent (December 16, 2008). Since nearly the same time, many financial forecasters have confidently predicted that interest rates simply must rise soon, perhaps based only on a general sense of history, and the notion that short term interest rates near zero seem abnormal enough that they should quickly correct themselves. A full seven years later, the FOMC made its first movement of the Fed Funds rate to a target of .25 percent to .50 percent on December 16, 2015. What this movement means for interest rate markets in the large, and for rates that affect agricultural lending and asset values through income capitalization relationships remains to be seen, but some historical relationships may help provide useful context.

First, it is important to recall that the U.S. Treasury debt market is not only the largest and most widely tracked “commodity” market, it also provides a basis against which almost all other “rates” in the world are measured, including agriculturally related rates. The relationship to other currencies and the “strength” of the dollar cannot be ignored or treated separately either, especially in agriculture where the value of agricultural exports is directly affected by changes in the value of the dollar.

Many economists summarize the strength of the dollar, or the fact that it has appreciated in value relative to other currencies as being a constraint on the FOMC’s ability to increase interest rates further, a point noted here because of the particular importance to agriculture and export dependent industries. Still, the narrative of the FOMC has been that of seeking justification for an exit from the period of quantitative easing that has largely persisted since the start of the housing credit crisis.

What is provided next is a somewhat simplified depiction of the history of interest rates, to highlight periods of large movements, and associated government actions. The presentation then turns directly to implications for borrowing spreads for the agricultural sector and capitalization rates in general for income producing assets. As those two topics could easily fill a semester

long course, the version provided herein is cast (with a nod to Stephen Hawking’s “Brief History of Time”), as a brief history of interest rates – or the cost of time through time. While long on pictures and brief on details, it hopefully provides an interesting presentation of interest rate markets over one of the most interesting periods in recent history.

To begin, a yield curve simply refers to the rates at a point in time for investments of differing terms in like-risk investments. As the Treasury yield curve is regarded as credit risk-free, it is generally used to summarize the risk free (inflation included) base rate against which most other investments are then compared. The shape of the Treasury yield curve in a general sense reflects the aggregate expectations and uncertainty over future inflation, productivity growth, and myriad other economic factors. Thus, while it is a “full information” market, that information changes through time and gets resolved in changes in both the Treasury yield curve and the “spreads” over Treasuries that other investments carry.

The size of an individual security’s spread in turn reflects perceptions of credit and liquidity risk embedded in the investments that are not in the Treasury analog. The spreads result in practical effects registering in things such as costs of loans, size of investments, terms (durations) of investment, and so forth that also aggregate to various levels of business activity. Monetary policy (and reserving requirements for those that view the Fed and Treasury as separate policy levers) are aimed to influence the level and shape of the yield curve to effect desired economic responses. While there is substantial debate about the effectiveness of any given policy, and even if government bonds can do anything to affect total wealth, it does at least seem clear that the nominal rate curves are sensitive to major monetary policy actions.

For concreteness, the “Term Structure” is the relationship at a point in time that shows the yields for investments of different terms to maturity. Figure 1 shows the rates for Constant Maturity Treasury rates as of mid-February, 2016 – the most recent week available at the time of this note. As can be seen, short term rates were under 1 percent out to a term of just under 4 years, and increase

“There are only two kinds of forecasters–those who don’t know and those who don’t know they don’t know.” ~John Kenneth Galbraith


to just over 2.6 percent for a period of a 30 year investment made as of 2/19/16. This curve serves as the starting point against which business investment and loan decisions are anchored through funding costs and associated spreads.

If nothing in the information set affecting rate expectations had ever changed, the curve would be the same every day and there would be no need to

change levels of business activity in response. However, if one simply plots this relationship each day, or week, or month to track historic differences, an interesting summary emerges that helps place historic events into relative context. Figure 2 simply collects the week-ending term structures for the past 15 years. If described in

terms associated with mountain topography, the sharper faces and cliffs represent more rapid movements, the peaks are higher levels, and the differing inclines at given dates reflect different views of inflation and productivity potential through time.

Starting from the left side of the graph, the post “dot.com” recession and period following the 9/11 terrorist attacks included sharply lower short term


interest rates. Some argue that the monetary easing that occurred was targeted at longer points on the yield curve, but that only the short end ever can be directly influenced by target fed funds rates and other exchanges of monetary aggregates. This point may be worth remembering when considering the impact on longer term rates since the last FOMC rate increase as 10 year rates have actually fallen in many cases.

In any case, the rapid expansion that followed was accompanied with higher short term interest rates and relatively little movement in the longer term rates, though rates exceeded 5 percent during 2004-6 corresponding to the highest running inflation periods as well. The FOMC actions during this period may be viewed as either leading or reacting, but are at least consistent in direction and magnitude with the resulting movements at the short term end of the yield curve where steady increases in target rates were implemented from June 2004 – June 2006.

The yield curve was gradually approaching a more normal shape until the next significant period of change in 2007 occurred with the start of the housing credit crisis. The government response that emerged included, for the first time in any meaningful magnitude, the direct purchase of assets by the Fed in an effort to enhance the credit profile that remained on the balance sheets of major financial institutions (rather than operate solely through rates offered for lent funds). Of particular note is the “cliff wall” at September 19, 2008 – the Friday after Lehman Bros. announced bankruptcy and perhaps the date of the greatest funding uncertainty in history for many lenders. Simply put, the term debt market shut down, the spreads moved in some cases by 900 basis points in a day, and overnight borrowings were used to roll longer term debt maturities in far greater degrees than ever before.

It took roughly a month to formalize the program that is now referred to as Quantitative Easing I -- or QE-1 – the program under which a total of approximately $2 Trillion was added to the Federal Reserve’s balance sheet through June 2010 primarily through purchases of mortgage backed securities whose associated capital requirements for banks were increasingly viewed as untenable to maintain. In other words, the Fed was the lender of last resort and became the secondary market for loans that had declined in credit quality.

The following “folds” at the front face of the surface can be associated with credit easing programs that followed including variously termed programs of

QEII, QEIII, Buyback, Twist, and Tapering, among others. In each case, what might be described as a liquidity “puddle” at the short end of the yield curve resulted from the exchange of longer term assets for shorter term assets also resulting in excess short term reserves. Given the excess liquidity that seems to exist at the short end of the yield curve, it is reasonable to ask whether the intended effects of policy, whether leading or lagging, or incidental to, in fact do show up in the rate curves and associated economic activities through actual borrowing and lending rates at other points along the yield curve. In particular, it is important to ask what implications there might be to agricultural markets, directly and indirectly.

One directly assessable issue relates to the cost of funding loans to agricultural producers. As eluded to earlier, a firm’s borrowing cost or spread to Treasury represents both firm specific risk and macro-level uncertainty for a combined effect referred to as the Credit Spread. Though only one part of the puzzle, the Farm Credit System is able to fund at spreads to Treasury that represent a form of “agency” borrowing, and may thus serve as a partial index of the impact of changes in treasury rates on changes in the funding costs for agricultural loans. Data on funding costs by term from the Federal Farm Credit Banks Funding Corp (FFCB) were used to construct a term structure surface akin to that shown in figure 2 for Treasuries, and then the corresponding Treasury rate subtracted to leave the spread surface function.

Shown in figure 3, this surface represents the additional costs of funding over Treasuries through time (monthly data are shown in contrast to earlier weekly data). What is most immediately evident is that the only meaningful historical disturbance in an otherwise fairly uniform history occurs over the height of the credit crises immediately post-Lehman bankruptcy. A natural follow-on question is to what extent the funding blip was associated with a perception of increased “own” risk or macro risk elevation


does not appear to view agricultural funding spreads to have elevated risk relative to more broad measures of business risk.

A material linkage to agricultural markets that can be easily examined is the mortgage rate paid for newly originated loans. The direct mortgage lending rates for farm mortgages can be thought of as having both a cost of funds component and a credit risk component. Figure 5 shows a long history of the mortgage rates, funding costs, and credit spreads in long-term agricultural mortgages (source: Federal Reserve Ag Finance Databook). In contrast to the 1980s when nominal interest rates on farm mortgages peaked at over 17 percent, current rates are hovering slightly above 4 percent. Importantly, another difference is that in today’s market, the total allowable leverage is far lower than in the 1980s when it was at times possible to borrow at 80 percent loan-to-value ratios. The more important feature in the graph may be the somewhat more subtle information in the credit spread component. In the period from 1970 to 1979, the credit risk component in farm mortgages as proxied by the spread over 10-year Treasuries averaged only 129 basis points. In contrast, since then, the spread has averaged slightly over 2.5 percent, and has not begun expanding in recent quarters despite some popular press presentations about increasing risk in agriculture.

Period Spread1970-1979 1.29 percent1980-2015 2.52 percent

So what does all this mean for agriculture and for farmland markets in particular? Given the opening quote, it would not seem useful to forecast a particular outcome -- but some patterns in history emerge that may help make sense out of future rate environments as they are realized.

First, we remain in a period of anomalous interest rates – the short end of the yield curve is low by nearly any measure of history, but it is important to understand that information alone, there is no direct implication for any particular rate change pattern, and we could continue to have historically low rates for some time in the future as easily as we could have a series of rate increases. Interest rate

markets are driven far more by long term productivity expectations, and prospects for economic growth than by any particular monetary policy move.

Secondly, the only part of the rate curve that seems to be directly affected by FOMC actions is at the very short end. Long term capitalization rates, and long term interest

and magnification of all risks relative to treasuries. Figure 4 presents one constructed form of an answer to that question where credit spreads and share of the 10Y CMT rate are used to place the FCS credit spread in context throughout the credit crisis. In figure 5, several credit spreads are presented. The BAA-AAA spread is a measure of the difference in high quality bonds versus low investment grade bonds – or the corporate grade credit spread. The BAA-10Y CMT shows the amount of perception of credit risk through time on corporate bonds directly. SPY1 is the label on the Farm Credit System 1-year spread over treasuries for comparison.

The final line is a constructed measure of the excess credit spread on FCS bonds. It is constructed as a ratio of the 10-year total credit spread on FCS bonds to the 10 year credit spread on corporate bonds to normalize for general rate level uncertainty increases. What remains is the share of the spread due to FCS only effects and again results in a remarkably stable response. This result would stand in contrast to the same effect if plotted through the early 1980s when the funding costs for FCS entities exploded over Treasuries due to perceptions of firm specific risk.

This roughly constructed excess spread measure, regardless of precision, seems to highlight that it was a period of general rate stress, not a funding response

specific to the farm credit system. In contrast, had similar measures been shown for the period in the early 1980s when the farm financial crisis occurred, the associated FCS credit spread would have exploded relative to Treasuries and corporate bonds signaling the perception that it was a lender specific increase in risk, not an economy wide event. A summary could be that the market


rates are eventually tied to market effects that may be influenced by overnight rates, but at least for now, the impact on farm mortgage rates and on “cap” rates has not shown to have a tight linkage. If rates were to suddenly move, it would be natural for long term asset values to react accordingly (drop under rate increases, and rise under rate declines).

However, the summary is rather anticlimactic in that regard – agricultural asset markets remain driven by basic economics and will continue to be so, and interest rate markets are rational and thus difficult to predict. Factors that affect long term prospects for income and for cost of capital will continue to shape asset markets and farmland markets are no exception. It is hoped that the interest rate data provided at least provide a sense of the levels, relationships, and perhaps difficulties in presenting simple models for forecasting asset values in the future. Interesting times indeed.

Note: The views expressed herein are solely the author’s

opinions and do not necessarily reflect those of entities with whom professionally affiliated. All errors and omissions are the author’s alone.


Our Commercial SponsorsWe would like to acknowledge our commercial sponsors whose support greatly enriches the programs of the

Illinois Society of Professional Farm Managers and Rural Appraisers:

Platinum LevelAgriGold Hybrids

Bayer Crop Science Beck’s Hybrids

Dow AgroSciencesLG Seeds Monsanto

DuPont PioneerWyffels Hybrids

Gold Level1st Farm Credit Services

BASFBurrus Hybrids

COUNTRY Financial Farm Credit Illinois

SilverAg Drainage, Inc.

Agricultural Soil Management (ASM) Syngenta Crop Protection

BronzeConservis Corp

LandOwner Magazine

Please show your support and purchase Products/Services from these companies whenever it is appropriate to do so.


1st Farm Credit Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19, 29, 35, 40Ag Drainage, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Inside Front CoverAgriDataInc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Agrivest, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66Akers Group Realty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20, 24Bank of Pontiac . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42Brandt Consolidated, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59Brett Berger, ARA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78, 82, 91Busey Ag Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38, 49, 57Capital Agricultural Property Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18, 24, 33, 43, 53, 60Central Bank Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26Cochran Ag Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53, 83Farm Credit Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47, 60, 67, 76, 83, 89Farmers National Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18, 27, 32, 41, 48, 63, 68, 75Farmland Solutions, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63First Illinois Ag Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62, 71, 77, 82First Mid-Illinois Bank & Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52Gorsuch-Hensley Real Estate & Action Co.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36, 43Heartland Ag Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41, 50, 61, 71Heartland Ag Group of Springfield, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70Heartland Bank & Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20, 24, 43, 51, 59, 71Hertz Farm Management, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20, 26, 40, 46, 61Ingram’s Soil Testing Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44, 55Land Pro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20, 30, 43, 46, 60, 69LandOwner Newsletter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Leka Land Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66MetLife Agricultural Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22Murray Wise Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50, 64PAQ Interactive...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 54R. W. Young & Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Raubach Appraisal Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92Ray Farm Management Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Silveus Insurance Group, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12Soy Capital Ag Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19, 27, 33, 39, 54, 58, 71, 74Spurling Title, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58Waibel Farmland Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55Worrell Associates Land Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68

Is YOUR company not on the roster above? Should it be? For information about being a part of the 2016 Farmland Values and Lease Trends,

contact ISPFMRA at the address/numbers shown below. Be A Part Of It!!

Illinois Society of Professional Farm Managers and Rural AppraisersN78W14573 Appleton Ave., #287, Menomonee Falls, WI 53051

Telephone - 262-253-6902 FAX - 262-253-6903Email - [email protected]

www.ispfmra.org

Advertiser Directory


Documents

2016 Illinois Land Values and Lease TrendsLV+Report+for... · tion and presents several speakers to share the latest trends and ownership issues of the diverse ownership of farmland