AgLetter: November 2002
Demand to purchase farmland grew last quarter, especially
among nonfarm investors, contributing to the increase in
the value of “good” agricultural land for the Seventh Federal
Reserve District. Based on a survey of more than 360
agricultural bankers as of October 1, 2002, the quarterly increase in farmland values rose to 2 percent, on average, for
the District as a whole. For the twelve months ending September 30 the increase was 7 percent. The year-over-year increase exceeded that of last year. Looking ahead, more bankers expected farmland values to go up and fewer expected
farmland values to decline in the next three months.