Although the near-term projection for farmland values is higher, Schnitkey warns that today’s historically low interest rates could rise, potentially pressuring the value of land and other assets.

“That’s the biggest risk I see to farmland prices,” he says.

He notes that at the current 30-year treasury bill interest rate of 3.3%, the capitalized value of the average acre of Illinois farmland is $5,000. “If interest rates went back to what they were in 1990, 8.5%, the capitalized value of that acre of farmland would be $2,000.”