AgLetter: August 1998
Last Updated: 08/04/98
Our latest survey of agricultural banks in the Seventh Federal Reserve District found that farmland values continued to rise during the winter. The bankers reported that farmland values rose 2 percent during the first three months of 1998, while the year-over-year gain, as of April 1, averaged about one-tenth. The demand for new farm loans remained firm and the survey respondents reported a modest increase in available funding for farm loans. But loan repayments at agricultural banks deteriorated— compared with a year earlier—due to lower prices for most farm commodities.