AgLetter: August 1999
A survey of over 365 agricultural bankers indicated that farmland values rose one percent during the second quarter (April 1 to July 1), the first District-wide increase reported since early 1998. The bankers also reported that farmland values—on average—were unchanged for the twelve-month period ending July 1. In addition, credit conditions failed to improve, with bankers again reporting slower farm loan repayments and an increase in the number of borrower requests for loan renewals and extensions. The bankers also indicated they stepped up their own requests for additional loan collateral during the second quarter, and that there appeared to be a general decline in the overall quality of farm loan portfolios relative to a year earlier.