Farmland cash rental rates in the Seventh Federal Reserve
District soared higher this year compared with those in
2007, rising 21 percent. But the year-over-year increase in
District farmland values eased to 14 percent in the first
quarter of 2008. A survey of 240 bankers in the Seventh
District on April 1, 2008, indicated a slower quarterly increase
of 2 percent in the value of “good” agricultural land.
Almost half of the bankers expected increases in land values
for the second quarter of 2008; nearly half expected stable
land values; and only 2 percent expected decreases. In
addition, two-thirds of the respondents reported that the
demand to purchase farmland exceeded the demand of
the winter and early spring a year ago.