AgLetter: May 2007
The year-over-year change in Seventh Federal Reserve District farmland values edged up to 10 percent in the first quarter of 2007, and cash rental rates for farmland surged upward. A survey of 275 bankers in the Seventh District on April 1, 2007, showed a quarterly increase of 5 percent in the value of “good” agricultural land for the District. Over half of the bankers expect land values to increase in the April–June period. Furthermore, over half of the respondents reported that the demand to purchase farmland was higher over the winter than a year ago. The share purchased by farmers increased slightly, even as the amount of farmland sold (and on the market) rose.