LAND PRICES OUT 

 OF LINE WITH 

 LONG-TIME INCOME 



THERE is some indication that prevail- 

 ing land prices, in many cases, appear 

 to be out of line with expected future 

 earnings. Such a trend was cited in the 

 11 land appraisal clinics held during 

 June and July throughout Illinois under 

 the sponsorship of the U. of I. Extension 

 Service and Farm Bureaus in cooperation 

 with the Federal Land Bank. 



U. of I. economists pointed out that 

 not all high bids for land now producing 

 abundantly are out of line, but some 

 bidders for land are putting prices much 

 above the estimated long-time value for 

 agricultural uses. 



The purpose of the clinics was to dem- 

 onstrate the use of a "form chart" as a 

 check list in appraising farm land values. 



In the clinic held in Woodford county, 

 which drew representatives from nine 

 other counties, the average estimate of 

 37 farmers on the l60-acre farm used 

 in the demonstration, was $192, or within 

 $8 per acre of the estimate made by the 

 Federal Land Bank appraiser. This par- 

 ticular farm was considered by many at 

 the clinic to include some of the best 

 land in the district. 



These appraisals were based on normal 

 values, but it was reported that recent 

 sales in Woodford county indicate that 

 comparable farms are selling from 60 to 

 75 per cent higher than the people who 

 attended the clinic think they are worth 

 if they must be paid for out of expected 

 future earnings. 



In the clinic held at Champaign, where 

 a typical farm was used, estimates ranged 

 from $132 to $275 per acre, and the 

 average was $162 for 37 persons making 

 valuations. 



In contrast to these valuations on this 

 particular farm, which includes land most 

 of the appraisers regarded as above aver- 

 age for the area. Prof. C. L. Stewart 

 furnished some figures on 38 recent 

 transactions in Champaign county. The 

 average per acre price in these transac- 

 tions which covered a period from Jan. 

 1, 1945 to March 31, 1945, was $250. 

 These 38 farm sales involved 3600 acres. 



There also was a lesson to be gained 

 in the Champaign clinic in studying the 

 variation in gross income of the farm 

 used in the study. At depression prices, 

 the appraisal study showed the gross 

 income would have been $661, at present 

 prices it would be $3984, and at 

 "normal" prices, $1737. A man buying 

 a farm on credit at prevailing prices and 

 trying to pay for it at depression income 

 levels would find himself in a squeeze. 



Soil samples were studied by those at- 

 tending the land appraisol clinics held 

 throughout the state during lune ond luly. 

 Here in Champaign county, left to right, 

 ore Dr. R. S. SmiA. agronomy department. 



n. oi I.. Clark E. Wise, Champaign County 

 Farm Bureau president* J. Q. Scott Doug- 

 las county iarm adviser, and Fred Meers. 

 Champaign county ionner and livestock 

 raiser, extreme right (Courier Photo) 



At the Champaign and Woodford 

 clinics, as well as the others held over 

 the state, the appraisers used prices for 

 Saleable products which they expect to 

 prevail during the next 25 to 30 years as 

 a basis for their estimates. According 

 to the average of many predictions made 



at Woodford county, corn prices will 

 average 55 cents and oats 30 cents in 

 this period. 



Illinois grain prices from 1930 to 1944 

 averaged 64 cents for corn, 36 cents for 

 oats, 90 cents for wheat, and $1.08 for 

 soybeans. 



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