Our latest quarterly survey of agricultural banks in the
Seventh Federal Reserve District found that the farmland
market was somewhat stronger this winter while credit
conditions were little changed from last fall. The indicated
rise in District farmland values for the first quarter
averaged 2.1 percent among the nearly 400 responding
bankers, more than double the fourth-quarter rise. Compared
to a year ago, the indicated gains averaged more
than 9 percent. The bankers also indicated that farm
loan demand continued strong in the first quarter. Their
views on farm loan repayment rates were mixed, but
somewhat improved overall from the previous quarter.
Interest rates charged on farm loans by the bankers
were little changed from both three months ago and
from a year ago.