A survey of over 365 agricultural bankers indicated that
farmland values rose one percent during the second
quarter (April 1 to July 1), the first District-wide increase
reported since early 1998. The bankers also reported that
farmland values—on average—were unchanged for the
twelve-month period ending July 1. In addition, credit
conditions failed to improve, with bankers again reporting
slower farm loan repayments and an increase in the
number of borrower requests for loan renewals and extensions.
The bankers also indicated they stepped up their
own requests for additional loan collateral during the
second quarter, and that there appeared to be a general
decline in the overall quality of farm loan portfolios relative
to a year earlier.