February 2024
Good ole H2O. For the most part, water is taken for granted as a very available and inexpensive natural resource. In fact, when we get too much and it causes flooding or poor crop production, we curse water. In the Midwest, to adequately drain excess water away from our fields, it can cost up to or over $1,000.00 per acre for drain tile. But let’s drill down to well water and more specifically aquifers.
The United States Geological Survey states that all groundwater runs into lakes, rivers, oceans, and underground storage called aquifers, which are water bearing rock that readily transmit water to wells and springs. Most of the void spaces in the rocks below the water table are filled with water.
Worldwide, 97% of the planet’s fresh water is stored in aquifers. Groundwater is the primary source of drinking water for more than 1.5 billion people worldwide. In excess of 95% of the rural United States population depends on groundwater for drinking.
Many low yielding domestic wells are not in aquifers. All water wells pump groundwater, but all don’t pump from aquifers. I personally have seen an aquifer pop out of a hill as a spring. We called them hillside seeps and usually installed field drainage tile to carry the water underground to an outlet, drying up the seepage so the area could be farmed.
An important point is that the increasing demand on water has made it a resource critical to a degree that even gold and oil have never been (Safe Drinking Water Foundation). Worldwide crop irrigation is by far the biggest drain on freshwater, which accounts for 70% drawn from rivers and wells each year. The United States, with the third highest irrigated areas in the world, uses groundwater for 43% of its irrigated farmland. Other industries have been expanding their water use even faster than agriculture. What does all this mean?
Over the years, I have had the opportunity to manage, buy, and sell land in some western states (Colorado, Kansas, Nebraska, Texas) which rely heavily on crop irrigation due to their soil structure and weather patterns. I learned very quickly the main source of water is the Ogallala Aquifer that stretches from South Dakota to Texas. (Source: Kansas Reflector, by Allison Kite and Kevin Harty). Their article states that approximately 14% of the total aquifer consists of irrigated acres capable of producing $7 billion in crop sales. It provides one-fourth of the total water supply for agricultural production in the United States. From my experience in working with farmland in these areas, most of the States are enacting regulations as to how much water can be pumped for irrigation purposes.
Jane Braxton (Scientific American) states that the vast underground reservoir is disappearing in some places where the groundwater is already depleted. Unfortunately, water depletion is exceeding water recharge from snow and rain. Of major concern is the possibility that the Texas portion of the aquifer could be fully depleted by 2100. Will this actually happen? Well, most of us will not be around this world to lay witness. My guess is stringent controls will be in place but will change the dynamics of agricultural production in these areas.
Some of my colleagues in the agricultural real estate business from Texas want me to refer to them land investors to purchase land. My answer is we will invest in Midwestern farms in areas that do not require irrigation. With average moisture of 32-36 inches annually, our biggest concern is getting rid of the excess moisture. Perhaps due to climate change and increased water consumption by human and commercial business, as we look to the future, where is the best place to own land long term?
Certainly the Midwest, but also the Delta region in the Mid-South where river water and well water are abundant. Will this have a long-term effect on land values? Yes. Crops will always need water and earnings will capitalize on the least expensive method of water delivery. We are very fortunate that the water source in Illinois, Iowa, and Indiana is from the heavens.
The main aquifer in Illinois is the Mahomet Aquifer, stretching from Mason County and the Illinois River across to just east of Hoopeston and the Illinois/Indiana state line. The Champaign County Farm Bureau News says the aquifer is 4-14 miles wide and 50-200 feet deep and originated approximately 1.5 million years ago from what was an ancient river that filled with sand and gravel called the Mahomet Bedrock Valley. It is the main source of drinking water for fifteen central Illinois counties.
So far, our good climate produces adequate rainfall to recharge the aquifer and not cause serious diminishment. Due to sandy soils, many farms in Mason County, and some in Tazewell County, pump water from this aquifer for crop irrigation purposes. There are some irrigation systems in Ford, Iroquois, and Champaign Counties that utilize the aquifer during dry conditions. It is well known that a major private investor of farmland in the area surrounding Champaign will seek out farmland in the Mahomet Aquifer. The investor knows the long-term value of having a great water source to use when weather conditions warrant.
My Thawville, Illinois farm is right on the western edge of the Mahomet Aquifer. As a kid, we had artesian wells, which is spring water under pressure from the aquifer that freely flowed year-round. It tasted great, had a cool temperature, and hit the spot after a hard day’s work on the farm. We had two wells, but after some time they caused a widening wet area in the farm’s tillable acres, so my dad capped the wells.
We are pleased to report that we are being contacted by landowners who desire to sell their farms during 2024 or early 2025. Land Pro LLC will be auctioning a 41.658-acre farm in McLean County, Illinois just south of Chenoa (intersection of Interstate 55 and US Hwy 24). The farm has productive soils, is tile drained, and has no buildings. This is a great opportunity to get started on owning a farm whether a first-time buyer, a buyer for family, an investor, or a beginning farmer. This excellent farm will be auctioned (live online only) on Tuesday, February 27, 2024, beginning at 10:00 am. For more information and to register for the Perry Chenoa Farm Auction, click here.
Spring is right around the corner!
~ Ray
Ray L. Brownfield, ALC AFM
Designated Managing Broker | Owner
Accredited Land Consultant
Accredited Farm Manager
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