@article{Oppedahl:334684,
      recid = {334684},
      author = {Oppedahl, David},
      title = {FARMLAND VALUES AND CREDIT CONDITIONS},
      journal = {AgLetter},
      address = {2022-02-01},
      number = {819-2023-1135},
      month = {Feb},
      year = {2022},
      abstract = {There was an annual increase of 22 percent in the Seventh  Federal Reserve District’s agricultural land values in  2021—the largest such rise over the past decade. In  addition, values for “good” farmland in the District gained  7 percent in the fourth quarter of 2021 from the third  quarter, according to 147 agricultural bankers who  responded to the January survey. Fifty-six percent of the  survey respondents expected farmland values to go up during  the January through March period of 2022, 1 percent  expected them to go down, and 43 percent expected them to  remain the same. District agricultural credit conditions  during the fourth quarter of 2021 continued to show signs  of improvement. Only 0.8 percent of agricultural borrowers  were not likely to qualify for operating credit at the  survey respondents’ banks in 2022 after qualifying in the  previous year (matching the survey’s record low, reached in  2012). In the final quarter of 2021, repayment rates for  non-real-estate farm loans were again higher than a year  ago, plus loan renewals and extensions were lower than a  year ago. Both of these indicators of farm credit  conditions were better than a year earlier in each of the  five most recent quarters. That said, non-real-estate farm  loan demand relative to a year ago was lower for a sixth  consecutive quarter. For ten quarters in a row, there have  been more funds available for lending than in the same  quarter the prior year at survey respondents’ banks. In  line with these trends, the average loan-to-deposit ratio  for the District retreated to 67.2 percent in the fourth  quarter of 2021—its lowest reading since the first quarter  of 2014. At the end of 2021, the District’s average nominal  interest rates on farm operating, feeder cattle, and farm  real estate loans were still very close to their respective  all-time lows; yet real interest rates on them had dropped  noticeably into negative territory.},
      url = {http://ageconsearch.umn.edu/record/334684},
      doi = {https://doi.org/10.22004/ag.econ.334684},
}