UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549


                                   FORM 10-Q




[X] Quarterly  Report  pursuant  to  Section  13  or  15(d)  of
the Securities
    Exchange Act of 1934


                 For the Quarterly Period Ended March 31, 2000

                                      or

[ ] Transition Report pursuant to Section 13 or 15(d) of the
Securities
    Exchange Act of 1934

        For the transition period from                to


                           Commission File #0-18431


                      Inland Land Appreciation Fund, L.P.
            (Exact name of registrant as specified in its charter)


         Delaware                                  #36-3544798
(State or other jurisdiction           (I.R.S. Employer
Identification Number)
 of incorporation or organization)


2901 Butterfield Road, Oak Brook, Illinois             60523
 (Address of principal executive office)             (Zip Code)


  Registrant's telephone number, including area code:  630-218-
8000


                                     N/A
                    (Former name, former address and former
                  fiscal year, if changed since last report)


Indicate by  check  mark  whether  the  registrant  (1)  has
filed all reports
required to be filed by Section 13  or  15(d) of the Securities
Exchange Act of
1934 during the  preceding  12  months  (or  for  such  shorter
period that the
registrant was required to file such reports), and (2) has been
subject to such
filing requirements for the past 90 days.  Yes X  No




                                      -1-



                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                                Balance Sheets

                     March 31, 2000 and December 31, 1999
                                  (unaudited)

                                    Assets
                                    ------

                                                       2000
1999
                                                       ----
----
Current assets:
  Cash and cash equivalents (Note 1).............. $   453,700
696,685
  Accounts and accrued interest receivable
    (Note 5)......................................     534,958
462,209
  Current portion of mortgage loan
    receivable (Note 5)...........................   1,418,966
1,427,057
  Other current assets............................         595
1,371
                                                   ------------  -
-----------
Total current assets..............................   2,408,219
2,587,322
                                                   ------------  -
-----------
Other assets......................................      39,910
42,984
Mortgage loans receivable, less current
  portion (Note 5)................................   1,681,984
1,747,986
Investments in land and improvements, at cost
  (including acquisition fees paid to Affiliates
  of $877,618 and $877,618 at March 31, 2000
  and December 31, 1999, respectively (Notes 1,
  2 and 3)........................................  20,701,187
20,302,677
                                                   ------------  -
-----------
Total assets...................................... $24,831,300
24,680,969
                                                   ============
============





















                See accompanying notes to financial statements.


                                      -2-



                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                                Balance Sheets
                                  (continued)

                     March 31, 2000 and December 31, 1999
                                  (unaudited)

                       Liabilities and Partners' Capital
                       ---------------------------------

                                                       2000
1999
                                                       ----
----
Current liabilities:
  Accounts payable................................ $    30,296
9,617
  Accrued real estate taxes.......................      56,915
45,099
  Due to Affiliates (Note 2)......................      53,844
42,744
  Notes payable to Affiliate (Note 6).............   2,493,750
2,493,750
  Unearned income.................................      55,446
3,207
                                                   ------------  -
-----------
Total current liabilities.........................   2,690,251
2,594,417

Deferred gain on sale of investments in land and
  improvements (Note 5)...........................     284,253
296,357

Partners' capital (Notes 1 and 2):
  General Partner:
    Capital contribution..........................         500
500
    Cumulative net income.........................     173,086
172,541
    Cumulative cash distributions.................    (153,743)
(153,743)
                                                   ------------  -
-----------
                                                        19,843
19,298
  Limited Partners:                                ------------  -
-----------
    Units of $1,000. Authorized 30,001 Units,
      29,596 Units outstanding (net of offering
      costs of $3,768,113, of which $1,069,764
      was paid to Affiliates).....................  25,875,185
25,875,185
    Cumulative net income.........................   8,035,391
7,969,335
    Cumulative cash distributions................. (12,073,623)
(12,073,623)
                                                   ------------  -
-----------
                                                    21,836,953
21,770,897
                                                   ------------  -
-----------
Total Partners' capital...........................  21,856,796
21,790,195
                                                   ------------  -
-----------
Total liabilities and Partners' capital........... $24,831,300
24,680,969
                                                   ============
============








                See accompanying notes to financial statements.


                                      -3-



                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                           Statements of Operations

              For the three months ended March 31, 1999 and 1998
                                  (unaudited)

                                                       2000
1999
Income:                                                ----
----
  Sale of investments in land and improvements
    (Notes 1 and 3)............................... $      -
484,130
  Recognition of deferred gain on sale of
    investments in land and improvements (Note 5).      12,104
5,003
  Rental income (Note 4)..........................      64,072
59,933
  Interest income.................................      76,816
81,531
  Other income....................................        -
3,500
                                                   ------------  -
-----------
                                                       152,992
634,097
                                                   ------------  -
-----------
Expenses:
  Cost of land sold...............................        -
320,961
  Professional services to Affiliates.............       9,314
10,400
  Professional services to non-affiliates.........      27,300
28,675
  General and administrative expenses to
    Affiliates....................................      10,279
11,774
  General and administrative expenses to
    non-affiliates................................      15,186
18,901
  Marketing expenses to Affiliates................       4,312
27,149
  Marketing expenses to non-affiliates............       7,353
5,692
  Land operating expenses to non-affiliates.......      12,647
13,769
                                                   ------------  -
-----------
                                                        86,391
437,321
                                                   ------------  -
-----------
Net income........................................ $    66,601
196,776
                                                   ============
============

Net income allocated to:
  General Partner.................................         545
286
  Limited Partners................................      66,056
196,490
                                                   ------------  -
-----------
Net income........................................ $    66,601
196,776
                                                   ============
============

Net income allocated to the one General
  Partner Unit.................................... $       545
286
                                                   ============
============

Net income per Unit allocated to Limited Partners
  per weighted average Limited Partner Units
  (29,596 and 29,606 for the three months
  ended March 31, 2000 and 1999, respectively).... $      2.23
6.64
                                                   ============
============


                See accompanying notes to financial statements.


                                      -4-



                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                           Statements of Cash Flows

              For the three months ended March 31, 2000 and 1999
                                  (unaudited)



                                                       2000
1999
Cash flows from operating activities:                  ----
----
  Net income...................................... $    66,601
196,776
  Adjustments to reconcile net income to net cash
      provided by (used in) operating activities:
    Gain on sale of investments in land and
      improvements................................        -
(163,169)
    Recognition of deferred gain on sale of
      investments in land and improvements........     (12,104)
(5,003)
    Changes in assets and liabilities:
      Accounts and accrued interest receivable....     (72,749)
(64,233)
      Other current assets........................       3,850
914
      Accounts payable............................      20,679
31,377
      Accrued real estate taxes..................       11,816
11,386
      Due to Affiliates...........................      11,100
(243,217)
      Unearned income.............................      52,239
27,862
Net cash provided by (used in) operating           ------------  -
-----------
    activities....................................      81,432
(207,307)
                                                   ------------  -
-----------
Cash flows from investing activities:
  Principal payments collected on mortgage
    loans receivable..............................      74,093
44,365
  Additions to investments in land
    and improvements..............................    (398,510)
(112,629)
  Proceeds from disposition of investments in
    land and improvements.........................        -
484,130
Net cash provided by (used in) investing           ------------  -
-----------
  activities......................................    (324,417)
415,866
                                                   ------------  -
-----------
Net increase (decrease) in cash and
  cash equivalents................................    (242,985)
208,559
Cash and cash equivalents at beginning of period..     696,685
1,133,942
                                                   ------------  -
-----------
Cash and cash equivalents at end of period........ $   453,700
1,342,501
                                                   ============
============










                See accompanying notes to financial statements.


                                      -5-



                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                         Notes to Financial Statements

                                March 31, 2000
                                  (unaudited)


Readers of this  Quarterly  Report  should  refer  to the
Partnership's audited
financial statements for the  fiscal  year  ended  December 31,
1999, which are
included  in  the  Partnership's  1999   Annual  Report,  as
certain  footnote
disclosures which would  duplicate  those  contained  in such
audited financial
statements have been omitted from this Report.

(1)  Organization and Basis of Accounting

The Registrant, Inland Land  Appreciation  Fund,  L.P. (the
"Partnership"), was
formed in  October  1987,  pursuant  to  the  Delaware  Revised
Uniform Limited
Partnership Act, to invest in undeveloped land on an all-cash
basis and realize
appreciation of such land  upon  resale.  On  October 12, 1988,
the Partnership
commenced an  Offering  of  10,000  (subject  to  increase  to
30,000) Limited
Partnership Units ("Units") pursuant to  a  Registration Statement
on Form S-11
under the Securities Act of 1933.  Inland Real Estate Investment
Corporation is
the General Partner.  The  Offering  terminated  on October 6,
1989, with total
sales of 30,000 Units, at $1,000 per Unit, not including the
General Partner or
the Initial Limited Partner.    All  of  the  holders  of these
Units have been
admitted to this Partnership.  The Limited Partners of the
Partnership share in
their portion of  benefits  of  ownership  of  the  Partnership's
real property
investments according to the number of Units held.    As of March
31, 2000, the
Partnership has repurchased a total  of  404.75 Units for $357,702
from various
Limited Partners through  the  Unit  Repurchase  Program.    Under
this program
Limited Partners may under  certain  circumstances have their
Units repurchased
for an amount equal to their Invested Capital.

Except as described in footnote (b)  to  Note 3 of these notes,
the Partnership
uses the area  method  of  allocation,  which  approximates  the
relative sales
method of  allocation,  whereby  a  per  acre  price  is  used  as
the standard
allocation method for land purchases and  sales.   The total cost
of the parcel
is divided by the total number of acres to arrive at a per acre
price.

The preparation of financial  statements  in conformity with
generally accepted
accounting principles requires  management  to  make  estimates
and assumptions
that affect the reported amounts  of  assets  and liabilities and
disclosure of
contingent assets and liabilities at  the  date of the financial
statements and
the reported amounts of  revenues  and  expenses  during the
reporting periods.
Actual results could differ from those estimates.

In  the  opinion  of  management,  the  financial  statements
contain  all the
adjustments necessary, which  are  of  a  normal  recurring
nature, to present
fairly the  financial  position  and  results  of  operations  for
the periods
presented herein.  Results of interim periods are not necessarily
indicative of
results to be expected for the year.




                                      -6-



                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                         Notes to Financial Statements
                                  (continued)

                                March 31, 2000
                                  (unaudited)


(2)  Transactions with Affiliates

The General  Partner  and  its  Affiliates  are  entitled  to
reimbursement for
salaries and expenses of employees  of  the  General Partner and
its Affiliates
relating to the administration of the  Partnership.  Such costs
are included in
professional services and general and administrative expenses to
Affiliates, of
which $38,881 and $878 were unpaid as  of March 31, 2000 and
December 31, 1999,
respectively.

The General Partner is entitled to  receive Asset Management Fees
equal to one-
quarter of 1% of  the  original  cost  to  the  Partnership of
undeveloped land
annually, limited to a cumulative total over  the life of the
Partnership of 2%
of the land's original cost  to  the  Partnership.    As  of June
30, 1998, the
Partnership had met this limit. No such fees were incurred in 1999
and 2000.

An  Affiliate  of  the  General  Partner  performed  marketing
and advertising
services for the Partnership and  was  reimbursed  (as set forth
under terms of
the Partnership Agreement) for direct costs.   Such costs of
$4,312 and $27,149
have been incurred and are included in marketing expenses to
Affiliates for the
three months ended March 31, 2000 and  1999, respectively. As of
March 31, 2000
and December 31, 1999, all of such fees were paid.

An Affiliate of  the  General  Partner  performed  property
upgrades, rezoning,
annexation and other activities  to  prepare the Partnership's
land investments
for sale and  was  reimbursed  (as  set  forth  under  terms of
the Partnership
Agreement) for salaries and direct  costs.    The Affiliate did
not recognize a
profit on any project.  Such costs are included in investments in
land.




















                                      -7-



<TABLE>                                        INLAND LAND
APPRECIATION FUND, L.P.
                                                     (a limited
partnership)

                                                  Notes to
Financial Statements

(continued)

(3) Investments in Land and Improvements
<CAPTION>

Total
                   Gross                            Initial Costs
Costs                     Remaining    Current
                   Acres    Purchase/  ---------------------------
-----------  Capitalized     Costs of      Costs of   Year Gain
       Location: Purchased    Sales       Original  Acquisition
Total     Subsequent to    Property     Parcels at   on Sale
Parcel  County    (Sold)      Date         Costs       Costs
Costs      Acquisition       Sold        03/31/00   Recognized
------ --------- ---------- ---------- ------------ ------------ -
----------- -------------- ------------ ------------ ------------
<S>    <C>       <C>        <C>        <C>          <C>
<C>          <C>            <C>          <C>          <C>
 1      Kendall    84.7360   01/19/89  $   423,680       61,625
485,305      5,462,589    5,947,894          -           -
                   (3.5200)  12/24/96
                    (.3520)  11/25/97
                  (80.8640)  12/29/97

 2      McHenry   223.4121   01/19/89      650,000       95,014
745,014         25,871      611,505       159,380        -
                 (183.3759)  12/27/90

 3      Kendall    20.0000   02/09/89      189,000       13,305
202,305           -         202,305          -           -
                  (20.0000)  05/08/90

 4      Kendall    69.2760   04/18/89      508,196       38,126
546,322         79,762      235,275       390,809        -
                    (.4860)  02/28/91
                  (27.5750)  08/25/95

 5      Kendall   372.2230   05/03/89    2,532,227      135,943
2,668,170        282,048      160,313     2,789,905        -
        (a)        (Option)  04/06/90

 6      Kendall    78.3900   06/21/89      416,783       31,691
448,474        216,077         -          664,551        -
        (b)
 7      Kendall    77.0490   06/21/89       84,754        8,163
92,917        201,106         -          294,023        -
        (b)
 8      Kendall     5.0000   06/21/89       60,000        5,113
65,113           -          65,113          -           -
        (b)        (5.0000)  10/06/89

 9      McHenry    51.0300   08/07/89      586,845       22,482
609,327          6,755         -          616,082        -
        (b)
10      McHenry   123.9400   08/07/89       91,939        7,224
99,163            600       99,763          -           -
        (b)      (123.9400)  12/06/89

11      McHenry    30.5920   08/07/89      321,216       22,641
343,857         10,821         -          354,678        -
        (b)
12      Kendall    90.2710   10/31/89      907,389       41,908
949,297          5,460        7,456       947,301        -
                    (.7090)  04/26/91

13      McHenry    92.7800   11/07/89      251,306       19,188
270,494          8,358        6,136       272,716        -
                   (2.0810)  09/18/97

14      McHenry    76.2020   11/07/89      419,111       23,402
442,513         47,713         -          490,226        -

15       Lake      84.5564   01/03/90    1,056,955       85,283
1,142,238      1,661,344    2,803,582          -           -
                  (10.5300)  Var 1996
                   (5.4680)  Var 1997
                  (68.5584)  Var 1998
                                       ------------ ------------ -
----------- -------------- ------------ ------------ -------------
        Subtotal                       $ 8,499,401      611,108
9,110,509      8,008,504   10,139,342     6,979,671        -



-8-


                                      -8-



                                                    INLAND LAND
APPRECIATION FUND, L.P.
                                                          (a
limited partnership)

                                                       Notes to
Financial Statements

(continued)



(3) Investments in Land and Improvements (continued)

Total
                   Gross                            Initial Costs
Costs                     Remaining    Current
                   Acres    Purchase/  ---------------------------
-----------  Capitalized    Costs of       Costs of   Year Gain
       Location: Purchased    Sales       Original  Acquisition
Total     Subsequent to   Property      Parcels at   on Sale
Parcel  County    (Sold)      Date         Costs       Costs
Costs      Acquisition      Sold         03/31/00  Recognized
------ --------- ---------- ---------- ------------ ------------ -
----------- -------------- ------------ ------------ ----------
       Subtotal                        $ 8,499,401      611,108
9,110,509      8,008,504   10,139,342     6,979,671       -

16  Kane/Kendall  72.4187    01/29/90    1,273,537       55,333
1,328,870        660,557    1,106,579       882,848       -
                 (30.9000)   07/10/98
                 (10.3910)   12/15/99

17      McHenry   99.9240    01/29/90      739,635       61,038
800,673        452,070      320,961       931,782       -
                 (27.5100)   01/29/99

18      McHenry   71.4870    01/29/90      496,116       26,259
522,375         25,454       11,109       536,720       -
                  (1.0000)   Var 1990
                   (.5200)   03/11/93

19      McHenry   63.6915    02/23/90      490,158       29,158
519,316         12,271         -          531,587       -

20       Kane    224.1480    02/28/90    2,749,800      183,092
2,932,892        941,292        3,651     3,870,533       -
                   (.2790)   10/17/91

21      Kendall  172.4950    03/08/90    1,327,459       75,822
1,403,281        954,415    2,357,696          -        11,593
                (172.4950)   Var 1998

22      McHenry  254.5250    04/11/90    2,608,881      136,559
2,745,440         37,882         -        2,783,322       -

23      Kendall  140.0210    05/08/90    1,480,000      116,240
1,596,240        909,395    2,505,635          -           511
                  (4.4100)   Var 1993
                 (35.8800)   Var 1994
                  (3.4400)   Var 1995
                 (96.2910)   08/26/99

24      Kendall  298.4830    05/23/90    1,359,774       98,921
1,458,695         23,527       83,663     1,398,559       -
                 (12.4570)   05/25/90
                  (4.6290)   04/01/96

25       Kane    225.0000    06/01/90    2,600,000      168,778
2,768,778         17,387         -        2,786,165       -
                                       ------------ ------------ -
----------- -------------- ------------ ------------ -----------
                                       $23,624,761    1,562,308
25,187,069     12,042,754   16,528,636    20,701,187     12,104
                                       ============ ============
============ ============== ============ ============ ===========




</TABLE>




-9-


                                      -9-




                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                         Notes to Financial Statements
                                  (continued)

                                March 31, 2000
                                  (unaudited)


(3) Investments in Land and Improvements (continued)

(a) Included in  the  purchase  agreement  of  Parcel  5  was  a
condition that
    required the Partnership to  buy  an  option  to purchase an
additional 243
    acres immediately to the west of this parcel.  The sale
transaction relates
    to the sale of this option.

(b) The Partnership  purchased  from  two  third  parties,  two
sets  of three
    contiguous parcels of land (Parcels 6, 7  and 8; and Parcels
9, 10 and 11).
    The General Partner believes  that  the  total  value  of this
land will be
    maximized if it is treated and  marketed  to buyers as six
separate parcels
    and closed the transactions as  six  separate purchases to
facilitate this.
    Parcels 6, 7 and 8 will be treated  as  one parcel and Parcels
9, 10 and 11
    will be treated as one parcel  for purposes of computing
Parcel Capital (as
    defined) and distributions to the Partners.

(c) Reconciliation of investments in land and improvements owned:

                                        March 31,         December
31,
                                          2000               1999
                                      ------------       ---------
---
    Balance at January 1,............ $20,302,677
21,440,929
    Additions during period..........     398,510
782,498
    Sales during period..............        -
(1,920,750)
                                      ------------       ---------
---
    Balance at end of period......... $20,701,187
20,302,677
                                      ============
============


(4) Farm Rental Income

The Partnership has determined that all leases relating to the
farm parcels are
operating leases.  Accordingly, rental income is reported when
earned.

As of March 31, 2000, the Partnership  had farm leases of
generally one year in
duration, for approximately 1,920 acres of the approximately 2,172
acres owned.










                                     -10-



                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                         Notes to Financial Statements
                                  (continued)

                                March 31, 2000
                                  (unaudited)


(5)  Mortgage Loans Receivable

Mortgage loans receivable are the result  of  sales  of Parcels,
in whole or in
part.  The Partnership  has  recorded  a  deferred  gain  on
these sales.  The
deferred gain will be recognized  over  the  life  of the related
mortgage loan
receivable as principal payments are  received.    At  March 31,
2000, the fair
market value  of  the  mortgage  loans  receivable  approximated
their carrying
value.

                                                       Accrued
                                                       Interest
Deferred
                 Interest    Principal Balance        Receivable
Gain
Parcel  Maturity   Rate     03/31/00    12/31/99       03/31/00
03/31/00
------ --------- -------- ----------- -----------    ----------- -
----------
  1    12/30/00    9.00%   1,418,966   1,427,057        206,464
70,301

 15    06/30/02    9.00%     328,516     328,516         96,295
11,244

 21    06/30/03    9.00%     704,240     747,666        181,973
188,012

 23    08/26/03    9.00%     649,228     671,804         46,897
14,696
                          ----------- -----------    ----------- -
----------
                           3,100,950   3,175,043        531,629
284,253
                          =========== ===========    ===========
===========


(6)    Notes Payable to Affiliate

On December 31, 1998, the Partnership  obtained a loan from the
General Partner
in the amount  of  $2,493,750  solely  collateralized  by  Parcel
5.  The note
accrues interest at 7.2% and has a maturity date of December 29,
2001.  For the
three months ended March  31,  2000,  interest  of  $44,888 was
capitalized, of
which $14,963 was unpaid as  of  March  31,  2000.  At March 31,
2000, the fair
market value of the notes payable to Affiliate approximated its
carrying value.













                                     -11-



Item 2.  Management's  Discussion  and  Analysis  of  Financial
Condition  and
         Results of Operations

Certain statements in this  "Management's  Discussion and Analysis
of Financial
Condition and Results of Operations" and  elsewhere in this
quarterly report on
Form 10-Q constitute  "forward-looking  statements"  within  the
meaning of the
Federal Private Securities  Litigation  Reform  Act  of  1995.
These forward-
looking statements involve  known  and  unknown  risks,
uncertainties and other
factors which  may  cause  the  Partnership's  actual  results,
performance or
achievements to be materially different from any future results,
performance or
achievements expressed or implied  by  these forward-looking
statements.  These
factors include,  among  other  things,  federal,  state  or local
regulations;
adverse changes in general economic  or local conditions;
inability of borrower
to meet financial  obligations;  uninsured  losses;  and potential
conflicts of
interest between the  Partnership  and  its  Affiliates,
including the General
Partner.

Liquidity and Capital Resources

On October 12, 1988, the  Partnership  commenced an Offering of
10,000 (subject
to increase to 30,000)  Limited  Partnership  Units  pursuant to a
Registration
Statement on Form S-11 under the Securities  Act  of 1933.  On
October 6, 1989,
the Offering terminated with a  total  of  30,000  Units  sold to
the public at
$1,000 per Unit resulting in $30,000,000 in gross offering
proceeds, which does
not include the Initial Limited Partner and  the  General Partner.
All of the
holders of these Units  have  been  admitted  to  the Partnership.
The Limited
Partners of the Partnership share in  their portion of benefits of
ownership of
the Partnership's real property  investments  according  to the
number of Units
held.

The Partnership used $25,187,069 of  gross  offering proceeds to
purchase on an
all-cash basis  twenty-five  parcels  of  undeveloped  land  and
an  option to
purchase undeveloped  land.    These  investments  include  the
payment of the
purchase price, acquisition  fees  and  acquisition  costs  of
such properties.
Fourteen of the parcels were purchased during  1989 and eleven
during 1990.  As
of March 31, 2000, the Partnership has had multiple sales
transactions, through
which it has disposed  of  approximately  930  acres of the
approximately 3,102
acres originally owned.  As of  March 31, 2000, cumulative
distributions to the
Limited  Partners  have  totaled  $12,073,623  (which  represents
a  return of
Invested Capital, as defined in the  Partnership Agreement) and
$153,743 to the
General Partner.  Through March 31,  2000, the Partnership has
used $11,644,244
of working capital reserve  for  rezoning  and  other activities.
Such amounts
have been capitalized and are included in investments in land.

The Partnership's capital needs and resources will vary depending
upon a number
of factors, including the extent to which the Partnership conducts
rezoning and
other  activities  relating  to  utility  access,  the
installation  of roads,
subdivision and/or annexation of land to a municipality, changes
in real estate
taxes affecting the Partnership's land, and the amount of revenue
received from
leasing.  As of March  31,  2000,  the  Partnership  owns, in
whole or in part,
eighteen of its twenty-five original parcels,  the majority of
which are leased
to local farmers and are  generating  sufficient  cash flow from
farm leases to
cover property taxes and insurance.




                                     -12-



At March 31, 2000, the Partnership  had  cash and cash equivalents
of $453,700,
of which approximately $42,700 is reserved  for the repurchase of
Units through
the Unit Repurchase Program. The remaining  amount  is available
to be used for
Partnership expenses and liabilities, cash  distributions to
partners and other
activities with respect to some or all of its land parcels. The
Partnership has
increased its parcel sales effort in anticipation of rising land
values.

The Partnership plans to enhance the  value of its land through
pre-development
activities such as rezoning annexation and  land planning.  The
Partnership has
already been successful in, or is in the process of pre-
development activity on
a majority of the  Partnership's  land  investments.  Parcels  4,
6 and 7 have
completed one phase of improvements for  an industrial park and
sites are being
marketed. Parcel  16  has  been  zoned  with  development  and
sales marketing
underway. Zoning discussions have begun on  Parcel 12. The
Partnership sold the
remaining acres of Parcels 1, 15 and 21 to unaffiliated third-
parties (see Note
3 of the Notes to Financial Statements.)

Results of Operations

As of March 31, 2000, the Partnership owned eighteen parcels of
land consisting
of approximately 2,172 acres.  Of  the  2,172  acres owned,
approximately 1,920
acres are tillable, leased to  local  farmers and generate
sufficient cash flow
to cover property taxes, insurance and other miscellaneous
expenses.

Income from the sale of investments  in  land  and improvements
and the cost of
land sold for the three months ended  March  31, 1999 is the
result of the sale
of approximately 28 acres of Parcel 17.

Professional services to Affiliates and  non-affiliates decreased
for the three
months ended March 31, 2000, as  compared  to  the three months
ended March 31,
1999, due to a decrease in legal and accounting services.

General and  administrative  expenses  to  Affiliates  decreased
for the three
months ended March 31, 2000, as  compared  to  the three months
ended March 31,
1999, due to a decrease in  investor service expense General and
administrative
expenses to non-affiliates decreased for the three months ended
March 31, 2000,
as compared to the three months ended March  31, 1999, due to a
decrease in the
Illinois Replacement Tax.

Marketing expenses to Affiliates decreased for the three months
ended March 31,
2000, as compared to the three months  ended  March 31, 1999, due
to a increase
in the capitalization of marketing costs to the specific land
parcels.

Land operating expenses to non-affiliates  decreased for the three
months ended
March 31, 2000, as compared to the three  months ended March 31,
1999, due to a
decrease  in  maintenance  and  utility  expenses  of  the
Partnership's  land
investments.

                          PART II - Other Information

Items 1 through 5 are omitted because  of the absence of
conditions under which
they are required.

Item 6.  Exhibits and Reports on Form 8-K

     (a) Exhibits:

         (27) Financial Data Schedule

     (b) Reports on Form 8-K:

         None


                                     -13-






                                  SIGNATURES



Pursuant to the  requirements  of  the  Securities  Exchange  Act
of 1934, the
Registrant has duly caused  this  report  to  be  signed  on  its
behalf by the
undersigned, thereunto duly authorized.


                            INLAND LAND APPRECIATION FUND, L.P.

                            By:   Inland Real Estate Investment
Corporation
                                  General Partner


                                  /S/ ROBERT D. PARKS

                            By:   Robert D. Parks
                                  Chairman
                            Date: May 11, 2000


                                  /S/ PATRICIA A. DELROSSO

                            By:   Patricia A. DelRosso
                                  Senior Vice President
                            Date: May 11, 2000


                                  /S/ KELLY TUCEK

                            By:   Kelly Tucek
                                  Principal Financial Officer and
                                  Principal Accounting Officer
                            Date: May 11, 2000



















                                     -14-