AgLetter: February 2006
Capping the strongest two years of growth since the 1970s,
the annual increase in farmland values was 10 percent
in 2005, based on surveys completed by 258 agricultural
bankers in the Seventh Federal Reserve District. The
quarterly gain in the value of “good” agricultural land
for the District was 2 percent in the fourth quarter of
2005. Just under 30 percent of the respondents expected
farmland values to increase in the first quarter of 2006
and almost 70 percent expected them to remain stable.