AgLetter: November 2008
Though agricultural land values increased 14 percent in the third quarter of 2008 from the third quarter of 2007 in the Seventh Federal Reserve District, there was a shift in expectations toward more stable farmland values. Compared with the second quarter of 2008, the value of "good" farmland rose 2 percent, based on responses from 213 agricultural bankers to the October 1 survey. Higher demand by farmers to purchase farmland was anticipated to be offset by lower demand from nonfarm investors. Thus, the sentiment of respondents favored agricultural land values to level off in the fourth quarter of 2008.