AgLetter: November 2008
Though agricultural land values increased 14 percent in
the third quarter of 2008 from the third quarter of 2007 in
the Seventh Federal Reserve District, there was a shift in
expectations toward more stable farmland values. Compared
with the second quarter of 2008, the value of "good" farmland
rose 2 percent, based on responses from 213 agricultural
bankers to the October 1 survey. Higher demand by
farmers to purchase farmland was anticipated to be offset
by lower demand from nonfarm investors. Thus, the sentiment
of respondents favored agricultural land values to
level off in the fourth quarter of 2008.
