The increases in farmland values compared to a year ago
outstripped the increases in farmland rental rates as of the
first quarter of 2005. With continued purchases by nonfarm
buyers, the value of “good” agricultural land climbed 10
percent over four quarters for the Seventh Federal Reserve
District, whereas cash rental rates rose 5 percent. Based on
a survey of 266 agricultural bankers dated April 1, 2005,
the quarterly increase in farmland values was 4 percent
for the District as a whole, slightly above the increase last
quarter. Just 1 percent of the bankers expected decreases
in farmland values in the next three months, while 47 percent
expected increases. Respondents reported higher
amounts of farmland for sale in recent months compared
to the same period last year; moreover, the number and
acreage of farms sold increased from a year earlier.