You are here

Farmland value gains slowing, survey shows

Farm credit conditions stabilized in the third quarter, but gains in farmland values for all types of land in the Tenth Federal Reserve District posted the smallest gains since early 2004, according to the Federal Reserve Bank of Kansas City's quarterly Survey of Agricultural Credit Conditions.

The Tenth Federal Reserve District encompasses Colorado, Kansas, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.

This survey of 278 bankers in the Tenth Federal Reserve District also cited high input costs and drought-related losses as negative forces on farm income statements. The index of farm loan demand was flat in the third quarter, while the index of loan fund availability inched higher.

The survey also found interest rates on new farm loans continuing to move higher in the third quarter. While farm income edged lower in the third quarter, the outlook from respondents for the fourth quarter improved somewhat due in part to easing drought conditions in some areas and higher crop prices.

Farm credit conditions stabilized in the third quarter, but gains in farmland values for all types of land in the Tenth Federal Reserve District posted the smallest gains since early 2004, according to the Federal Reserve Bank of Kansas City's quarterly Survey of Agricultural Credit Conditions.

Read more about