Based upon our sales this year, tillable cropland values remain strong throughout the eastern Corn Belt. Prime farmland remains in high demand with values in many areas continuing to establish new all time high prices. Average farmland varies by location. In areas with ample supply, its values are steady. In areas of short supply, or if the farm offers a variety of alternative uses (recreational, hunting, etc.), values are generally steady to higher. Properties that lend themselves to rural residential use remain in high demand. Due to the desire to move to rural areas, prices for these types of property are as strong as any time in recent history. Farmland values in and around cities and towns are also effected by this migration and interest. Buyers of farmland parcels are evenly split between full-time farm operators and non-farming investors. Overall, relatively low interest rates, the lack of other strong investment alternatives, USDA support programs and tax deferred exchange investors continue to lend support to prices.

Farmland rental terms vary throughout the eastern Midwest. The rising cost of fuel has had a major impact on the cost of harvesting, tillage and planting practices. Additionally, natural gas prices are similarly high, forcing the cost of nitrogen fertilizer (primarily anhydrous ammonia) and the cost of drying harvested grain to unprecedented high levels. These and other input costs increases may eventually temper the rental market for farmland. Despite the high fuel prices, cash rents in most areas continue to be bid very competitively for 2006. The higher than normal commodity prices we enjoyed this past spring and summer continue to lead toward strong demand by farmers in most areas for farmland to rent.

We assist over 150 clients with the sale, acquisition or exchange of farmland annually. If you are thinking about selling your farm, acquiring additional land or are interested in exchanging what you own, we Can Help! Give us a call at (800) 424-2324.