Land Market and Lease Trends in Illinois

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Land Market and Lease Trends in Illinois

• Illinois Land Values Conference
• March 16, 2006
• Morris Illinois

Results of Membership Survey on Farmland Buyers
and Sellers Lease trends
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Estate sales dominate sellers
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Settle estates main reason for selling farmland
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Investors remain main buyers
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Buyer Attributes include that

• 56 of buyers use 1031 exchange funds
• 62 of buyers did not need debt capital

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1031 Buyers driving market
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Chicago is the Gorilla
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Price Increase Expected in 06
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Stable Trend expected for 2007
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Cash rent and custom farming have higher returns
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High end returns and variability
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Cash rents continue to increase
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Growth seen in amount of cash rent leases
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Competition leads to increases