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.