Demand to purchase farmland grew last quarter, especially
among nonfarm investors, contributing to the increase in
the value of “good” agricultural land for the Seventh Federal
Reserve District. Based on a survey of more than 360
agricultural bankers as of October 1, 2002, the quarterly increase in farmland values rose to 2 percent, on average, for
the District as a whole. For the twelve months ending September 30 the increase was 7 percent. The year-over-year increase exceeded that of last year. Looking ahead, more bankers expected farmland values to go up and fewer expected
farmland values to decline in the next three months.