Farmland values appeared to stabilize in the first quarter of 2009 for the 10th district, according to a survey of agricultural credit conditions conducted by the Federal Reserve Bank of Kansas City.
District farmland values held relatively steady after modest declines at the end of 2008. Non-irrigated farmland values rose 1.4 percent during the quarter, and there was no change in the value of irrigated acreage.
The survey of 255 bankers also found that softer farm incomes slowed capital spending, and turbulent agricultural and macroeconomic conditions contributed to tighter agricultural credit conditions.
Collateral requirements edged up and the rate of loan repayment fell for the second straight quarter. The bankers also felt that agricultural credit conditions could weaken further.
The 10th district includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, the northern half of New Mexico and the western third of Missouri.