AgLetter: November 2006
Third quarter farmland values were unchanged from those
of the second quarter of 2006, and the year-over-year increase
slowed to 7 percent for “good” agricultural land
in the Seventh Federal Reserve District. The survey results,
based on the responses of 241 agricultural bankers
as of October 1, 2006, provided evidence of cooling after
two years of double-digit gains in farmland values. About
a quarter of the respondents expected land values to increase
in the fourth quarter of 2006 (71 percent forecasted
stable values).