Farmland values were unchanged during the first quarter, on average, according to our survey of over 360 agricultural bankers in the Seventh Federal Reserve District. Furthermore, farmland values were flat during the twelve-month period ending April 1, 1999. The bankers also reported that cash rents paid by farmers showed little change from last year. Loan demand strengthened from a year ago, primarily due to the increased need for operating funds. The survey also showed that interest rates charged on new farm loans were essentially unchanged during the first quarter. In addition, a weaker pace of loan repayments continues to present a problem for both farmers and agricultural banks.