AgLetter: November 2009
The agricultural sector continued to deal with challenging circumstances in the third quarter of 2009, as evidenced by agricultural land values falling 4 percent below those of the third quarter of 2008 in the Seventh Federal Reserve District. However, the value of “good” farmland increased 2 percent relative to the second quarter of 2009, according to 225 replies by agricultural bankers to the October 1 survey. Forecasts for farmland values in the fourth quarter of 2009 were down, with respondents expecting lower demand to purchase farmland by both farmers and nonfarm investors.
