Illinois Century Farm Sells for $25,581 an Acre

A 176-acre century farm located in Waterloo, Illinois, sold at an auction on Oct. 29 for about $3.18 million, averaging $18,075 an acre. Waterloo is in the southwest part of the state and about a 30-minute drive from St. Louis. Brad and Brenda Chandler, the husband-and-wife team from Property Peddler Inc. who sold the acreage, describe Waterloo as a bedroom community and a desirable location for people who work in St. Louis to live and raise their families because of the lower cost of living and good schools.  

The Chandlers say the final figure from the sale was not unexpected. They predicted, within a few hundred dollars, what the property would get at auction. What did surprise them was the number of buyers who walked away with the land. They thought they might get a buyer or two who would purchase larger amounts. Instead, they had three individuals and a private school that bought smaller pieces of the property. About 30 people, all of them from the area, were registered for the auction. The price per acre ranged from about $13,914 to $25,581. 

Sellers 

The Chandlers say this sale was unique because of the large number of people who owned the property. Sixteen family members — seven of them part of a trust — had ownership in the property. The trust was under LaVerne Proctor. According to her obituary, she passed away in December 2022 and owned the century farm with her late husband, Roy. The remaining family members decided to sell the property. 

Buyers 

According to the agents, the four buyers have various plans for the land.  

• Tract 1: Buyer plans to build a home on the land. Sold for $20,000 an acre for a total of $210,000.  
• Tracts 2 and 3: Buyer is a private Christian school with plans to construct a new building. Sold for $25,581 an acre for a total of about $550,000. 
• Tracts 4 and 5: Buyer plans to continue farming the land. Sold for $21,121 an acre for a total of about $1.225 million.
• Tract 6: Buyer used a USDA Farm Service Agency (FSA) loan for beginning farmers to purchase the ground and plans to continue farming it. Sold for $13,914 an acre for a total of about $1.198 million.

Economic Analysis 

The sale of this property was much higher than the 2024 state-wide average of $8,700 an acre, which is tracked by the University of Illinois Farm Business Farm Management (FBFM). That amount includes the value of all land and buildings.  

Brad and Brenda say they thought this sale, along with another one they held recently in the same area, would confirm a hunch they had about what’s happening with farmland sales in their area: They are holding steady.  

This aligns with what the Federal Reserve Bank of Chicago reported in its November 2024 AgLetter. The authors of the newsletter say the seventh district of the United States, which includes Illinois, Iowa, Indiana, Michigan, and Wisconsin, had no year-over-year change in its agricultural land values in the third quarter of 2024. This was the first period without a year-over-year increase in district farmland values since the fourth quarter of 2019.  

The most recent statistics from the FBFM show what’s happened in recent years. 2024’s average of $8,700 an acre is a 3.3% increase over 2023’s average of $8,420. In 2023, there was a 2.4% increase over 2022. And in 2022 there was a 10.5% increase from 2021. Brad Zwilling who compiled the data for FBFM said, “With interest rates increasing at the end of 2022 and into 2024, some of the lower percentage of increase in land values can be explained.” 

Zwilling also explained how land values are holding steady at a time when interest rates are higher and commodity prices are lower. “We have seen this due to the strong financial positions farmers are in due to the record high incomes in 2021 and 2022 as well as not having alternative investments (CDs, more fixed investment income) until the last 18 months or so. With the excess income and strong financial positions, farmers continue to purchase land as well as other outside investors. However, we are seeing that trend slow now since there are other investments, lower returns, and the prospective of lower cash rents (returns to landowners).” 

About the Property   

The land sits on the edge of Waterloo, in Monroe County. The property is directly east of the Waterloo Country Club. The county has plans to redirect one of the roads along the border of the farm, transforming it into a dead-end public road. The land is a mix of fertile, tillable cropland; picturesque views; and an older home, according to Property Peddler. Taxes on the property for 2023 were $4,819.62. 

Tract 1  

• Acres: 10.5 
• Description: Mostly tillable land with a scenic pond. The city and county plans to redirect the Country Club Road and has indicated that the entry point for this tract will be approved on the north side of this property. 

Tract 2 

• Acres: 11
• Description: Mostly tillable land. The city and county plans to redirect the Country Club Road and has indicated that the entry point for this tract will be approved on the north side of this property. 

Tract 3 

• Acres: 10.5
• Description: Includes farmstead and historic home.  

Tract 4

• Acres: 19.4 
• Description: Mostly tillable land with road frontage on Country Club Lane, which is slated to become a dead end public road.  

Tract 5 

• Acres: 38.6
• Description: Frontage on Rogers Street, including farm access and an established turn lane in front of Rogers Street. 

Tract 6  

• Acres: 86.1 
• Description: Mostly tillable land, bordered by city limits on the east side. This tract also has frontage on Country Club Lane, which will be redirected into a dead end public road. 

All acreage amounts should be considered “more or less.”

Produced in partnership with American Farmland Owner (AFO). AFO aims to help landowners make informed decisions for their farmland while ensuring the prosperity of American agriculture.