Agricultural land values are very location specific. One size does not fit all, so to speak. Let’s start with the land in the counties surrounding Chicago. Farm land in Will, Kendall, Grundy, Kane and McHenry Counties all enjoyed a tremendous appreciation in value due to the housing boom. Farm land that once sold for $5,000-$6,000 per acre sky-rocketed to $30,000 - $100,000 per acre in some cases. This phenomenon triggered a very aggressive 1031 tax deferred exchange buyer market for land further out in DeKalb, Lee, LaSalle and Bureau counties, as well as other counties, causing a ripple effect.  Unfortunately, what went up came down. Beginning in 2007, the housing bubble began to lose air and would now be termed as a bust. This caused housing and associated development property to become financially distressed. In many cases, the lending institutions, who secured the land for loan collateral, now own the land through foreclosure. What is land that once sold for $50,000 per acre worth?  The quick answer is whatever the buyer is willing to pay. My colleagues, John Greene and Tim Greene, have done an exceptional job of working with lending institutions and finding investors who understand this market and have faith in its’ long term future, consequently selling numerous properties at terms acceptable to both buyer and seller. How has this all affected farm land values in other parts of Illinois? The housing boom and subsequent 1031 tax deferred exchange purchase of true farm land is where the market has really segmented. Land in DeKalb, LaSalle, Bureau and Lee, as well as other counties, became destination points for farm families who wanted to add to their existing holdings or who wanted to own land not too far from home. My experience is that DeKalb County enjoyed a very strong market for years at price highs of $9,000-$11,000 per acre. Due to relatively no development and or little to no 1031 exchanges, the market has weakened to around $7,500-$9,000 per acre. However, high quality farm land downstate in the Decatur, Bloomington, Springfield and Champaign areas has remained strong. The 1031 market moved that market up at a rate of approximately 20% per year from 2004-2006. When the housing market fell off, it was anticipated that prices would also fall in central Illinois, but in fact have remained stable due to strong farm owner buying. We are now working with and observing numerous investors purchasing class A soil farms at $8,000-$11,000 per acre. Some farms are auctioning for over $12,000 per acre. Why the investor interest in Central Illinois and not as much in northern Illinois? Primarily there seems to be more farm operator competition to cash rent the Class A soil farms at very lucrative lease terms. It is not uncommon to find a lease in the $300 -$350 range, and in some cases, $400 per tillable acre cash rent all paid up front March 1. Investors are very excited about achieving a 4-4 ½ % net cash-on-cash return on their investment. Beats the dickens out of most other investments, and will most likely appreciate over time at an average of 5-7% annually. So at the present time it appears the farmland throughout northern Illinois is more of a buyer’s market, and farm land downstate is looking more like a seller’s market. Stay tuned for more on this ever changing market. Ray L. Brownfield, AFM ARA ALC Broker john greene Land Company 34 Rance Road | Oswego IL  60543 630.551.3333| 630.551.3434f www.johngreeneland.com