The Farm Credit Illinois Lawrenceville and Mt. Vernon regional offices recently made investments in local youth programs. The donations are part of the financial cooperative’s ongoing support of rural communities and agriculture. In 2016, FCI invested more than $245,000 in youth, community, and ag literacy initiatives throughout its 60-county marketplace. [Read more…]
Archives for September 2017
Farm Credit Illinois projects a $2.8 million return to farmers through the two-month Harvest Interest Returns program announced on Thursday. The program will provide zero percent interest in October and November on more than 3,700 FCI operating loans.
Members with existing FCI operating loans in place on August 1, 2017, qualify. All interest accrued on qualifying loans with balances up to $500,000 during the months of October and November will be credited back to the loan during the months of November and December. [Read more…]
In January 2017, Farm Credit Illinois held two day-long Farm Credit College educational workshops hosting more than 180 farmers featuring Dr. Shannon Ferrell, Professor of Agricultural Economics at Oklahoma State University. Dr. Ferrell discussed the challenges of farm transition planning and various tools and strategies to consider.
This is the second in a series by Dr. Ferrell dedicated to answering questions raised by FCI members. The articles support FCI’s mission of Helping Farm Families Succeed today and tomorrow as mature generations consider not only their last principal payment, but their grandchildren’s first. [Read more…]
On many farms and ranches, long-term planning is given low priority, if any priority at all. Tending to the crops and livestock easily rank higher on the day’s to-do list. Thus, transition planning and even the mere subject of retirement gets put off. In fact, when asked about retirement, several producers objected to a plan saying they hope to farm until the end of their days. Not surprisingly, the same question posed to a producer’s spouse or life partner often meets raised eyebrows. Yet, the role of spouse and partner is crucial in the process of retirement planning. [Read more…]
Each year the Farm Credit Illinois (FCI) appraisal team evaluates the same 20 benchmark farms throughout its 60-county territory based on the land’s productive index (PI) rating, as calculated by the University of Illinois’ Bulletin 811.
Value Trends in the Last Decade & Today
Land values in the central and southern 60 counties of Illinois declined for the third consecutive year following a dramatic run-up in values from 2003-2014.
The 2015 benchmark study showed the first overall decline in more than a decade with an average decrease of 1.51 percent. 2016 showed a more widespread decrease with an overall average decline of 6.34 percent and 16 of the 20 benchmarks declining in value.
Sustained lower commodity prices and net farm income are starting to have a greater impact on farmland values. While demand for Illinois farmland remains favorable due to a limited supply and still historically low interest rates, farmland values have further declined 4.17 percent from July 1, 2016, to June 30, 2017, in FCI’s territory. Thirteen benchmark farms decreased in value, five showed virtually no change, and two slightly increased. [Read more…]