Illinois Farm Land Resources
FARM LAND RESOURCES For Illinois
ILLINOIS ESTATE TAX
As Illinois farmland prices have skyrocketed in recent years, many landowners have become very wealthy. While perhaps a fortuitous situation to face, many seasoned farmers may find themselves in a position where the estate tax could become a problem for their family. Sterling Land Company has seen the consequences of the estate tax first hand when a family is forced to sell their land to cover the bill.
FARM TILLING – TILL VERSUS NO-TILL
To till or not to till, has been a question in farming circles for decades. From an economic standpoint, tilling usually wins out. However, when considering long term sustainability and environmental factors, the case for no-till farming can be made.
In 1984, New Zealand repealed all governmental subsidies for farmers. Before that time, farmers there were receiving a higher percentage of subsidies than American farmers are today through our farm bill. When New Zealand farmers were faced with the end of their farm bill, many had predicted that scores of family farms would go broke and that there would be chaos throughout the land. Despite the fears, Kiwi farmers were quickly able to use their ingenuity to profit from the lack of government intervention in their affairs.
SOIL PRODUCTIVITY INDEX
One of the key factors in determining the value of Illinois farming land is based upon the productivity of the soil. On the Sterling Land Company website, properties for sale will usually be accompanied by a soil productivity index rating. While it’s sufficient to say the higher the number, the better the soil, gaining an understanding of the basis behind these ratings can help justify land prices.
WHY INVEST IN ILLINOIS FARMLAND
Illinois farmland continues to sell near record highs. Sterling Land Company agents have seen the price of land skyrocket over the last few years. Even when adjusting for inflation, these values represent historic values. Illinois farmland owners who rent to tenants are seeing returns of perhaps 3% or better in some situations. With savings account returns around 1% and many long term CD rates struggling to offer 2%, it’s difficult to find a better investment than Illinois farmland.
FARMLAND WITH IRRIGATION
Sterling Land Company often times assists in the sale of farmland that includes irrigation. Usually, the value of land is influenced largely by the soil productivity. A simplified way to look at land values is to assume that the higher the soil productivity, the higher the value of the land. Irrigation is a way to equalize the value and make land with lower soil productivity more valuable.
CORN BASED ETHANOL
Sterling Land Company assists in the sale of Illinois farmland. Much of the land in Illinois is used to grow corn that helps fuel our vehicles as ethanol. One of the major factors pushing the price of Illinois farmland higher is the widespread use of ethanol. Ethanol is alcohol derived from sugar or starch based plants.
WHY SHOULD I HIRE AN ILLINOIS FARMLAND BROKER?
Land sales conducted with the assistance of an Illinois farmland broker continue to set records while sales between private individuals lag well behind. When deciding whether or not to hire an Illinois farmland broker, the question isn’t how much money it will cost to hire them, but instead, how much it will cost to not hire them.
SELLING YOUR LAND
Naturally, an individual real estate broker will try to explain why you should hire them to sell your land over competing agents. While there is truth to the belief that some agents and companies do a better job than others, it’s important to understand why hiring real estate professionals to sell your land is critical, even when you might not succeed in hiring the best the industry has to offer.
Questions or Comments
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