AgLetter: May 1997
Our latest quarterly survey of agricultural banks in the Seventh Federal Reserve District found that the farmland market was somewhat stronger this winter while credit conditions were little changed from last fall. The indicated rise in District farmland values for the first quarter averaged 2.1 percent among the nearly 400 responding bankers, more than double the fourth-quarter rise. Compared to a year ago, the indicated gains averaged more than 9 percent. The bankers also indicated that farm loan demand continued strong in the first quarter. Their views on farm loan repayment rates were mixed, but somewhat improved overall from the previous quarter. Interest rates charged on farm loans by the bankers were little changed from both three months ago and from a year ago.