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18 March 24, 2016
2016 Logan County Farm Outlook Magazine
Lincoln Daily
News.compredicted a continued decrease in prices. They
said, “Farmland prices in Illinois decreased
modestly during the first half of 2015, and it
appears that downward pressures are likely to
continue into 2016.”
Land for sale vs. land being sold
Hartman said more land is on the market now than six
months ago. Most land is sold from December through
April. Land sales were down a couple of years ago,
but are slowly increasing.
In his recent article “Scorching Hot Illinois Farmland
Auctions Continue” Ben Potter indicates that there
have been many investors and farmers “vigorously”
bidding at recent farmland auctions. In that same
article, R.D. Schrader, president of Schrader Real
Estate and Auction Company said, “Nobody can
predict what’s ahead, but the reality we’re seeing
on the ground is that farmers and investors alike see
farmland as a good long-term investment.”
Size of the acreage being sold and bought
Hartman said several tracts of 200 acres or more are
for sale at this time. For example, Lincoln College has
some large tracts of land for sale around the county.
Most parcels are being sold in at least 20 acre plots.
When looking at who is buying acreage and
whether it is farmers with small, medium, or large
farms, Hartman said, “The range is all over the
board depending on the size of the tract and where
it is located. Most farmers are using it for crop
production.” He also said more of the acreage
is planted with corn than beans. Farmers may
occasionally rotate what they plant with three years
corn, then one year soybeans, but some just plant corn
from year-to-year.
Reasons for selling farms
Hartman said some are selling to settle an estate.
Others may be selling due to low profit margins,
which have caused many farmers to lose money.
Small farms are becoming part of big farms
When asked whether small farms are becoming part
of bigger farms, Greg Conrady, who farms near
Hartsburg, said, “Yes, it is inevitable now and what
[nearly] everyone is pushing toward. There are fewer
family farms now.” He said some farmers buy ground
when they inherit money.
Emden farmer Jim Klokkenga said there are not as
many small farms around the area anymore. He said
the trend is for farmers to own at least 900 to 1,000
acres, and some of the big farms are getting even
bigger. Klokkenga said most need at least 2,000
acres to be able to support a family. It is driven by
economics and tight margins, so it is difficult to
support yourself unless you have enough acres.
Hartman said some of the farmers in Logan County
who own bigger farms have over 5,000 acres, but the
vast majority have around 500 to 2,000 acres.
Uses for the land
Most of the land being purchased is used for crop
production. Hartman said Logan County is mostly
corn and soybean operations with little or no livestock.
There are some families with livestock operations
though.
The lower profit margins and lower commodity prices
will likely continue to affect land sales and farmland
values, so it is important to watch the trends closely.
By Angela Reiners