The responses from over 360 agricultural bankers indicated that District farmland values registered an average gain of 2 percent during the first quarter (January 1–April 1) of the year. The bankers also reported that farmland values were up 4 percent for the 12-month period ending April 1. In general, these results reflect the strongest showing by District farmland values in nearly two years. Despite the improvement, the bankers reported that District cash rental rates registered only a fractional increase from last year. Regarding credit conditions, the bankers indicated that farm loan demand strengthened during the first quarter, relative to a year earlier, and that both interest rates and loan-to-deposit ratios moved higher. Farm loan repayment rates remained sluggish, and the bankers also reported they made greater use of federal farm loan guarantees relative to a year earlier.