The responses of over 400 Seventh District agricultural
bankers to our July 1 survey indicated that farmland
values continued to climb this spring. The bankers reported
that farmland values—on average—rose 1.5 percent in
the second quarter. However, on a year-over-year basis,
farmland values registered a double-digit gain for the first
time in several years. The bankers also indicated that
gains in the demand for new agricultural loans eased, as
did the growth in funds available for agricultural lending.
Furthermore, the average interest rates charged on new
farm real estate loans moved higher for the first time in
over a year. The bankers also indicated that the quality
of their agricultural loan portfolios remains good, and
that their primary competitors are providing new loans
at a pace equal to or above the norm.