Prime Farmland Values across Central Illinois rose 14% in 2010. Most of the increase showed up after Thanksgiving (as commodity prices sky rocketed). Our chart of prime farmland values notes year ending values of $8,000 per acre! Hang on tight - - here we go!
History is our teacher in these uncertain times! Bruce J. Sherrick, PhD. at the University of Illinois highlights the 10.45% combined returns to farmland from 1970 through 2009 (which is well above all alternative investments over the last 40 years). Yes - - Agriculture is a bright spot on the world stage!
Rapid price improvements always bring on talk of a bubble - - and anything is possible. However - - farmland is what it earns - - and higher yields are combining with excellent grain prices to provide the profits that are propelled all types of farmland values higher. There is no bubble in farmland - - it is solid as a rock. Let's watch farmland earnings from here forward for any change.
We have taken a hard look at several items in this issue including:
2011 Winter Farmland Barometer
Take this issue of the Farmland Barometer with you by downloading the complete document here.
2010 Spring Farmland Barometer
Take this issue of the Farmland Barometer with you by downloading the complete document here.