AgLetter: August 2005
Values continued to increase in the second quarter of 2005 for “good” agricultural land in the Seventh Federal Reserve District, though the pace of growth slowed down. In the quarter ending July 1, 2005, farmland values rose 1 percent, on average, for the District, based on a survey of 269 agricultural bankers. The year-over-year increase through June 30 was 12 percent, higher than the annual increases recorded for the second quarter of 2004 and the first quarter of 2005. A majority of respondents anticipated farmland values will stabilize in the third quarter, but over 40 percent still predicted land values will go up.
