Richmond Fed Survey of Agricultural Credit Conditions (Text)

The following is the text of the Richmond Fed’s Survey of Agricultural Credit Conditions:

Results from the Richmond Fed’s latest survey of Fifth District agricultural banks indicated that weakness in agricultural credit lending conditions eased during the first quarter of 2011. Bankers reported that farm loan demand contracted at a slower pace than in late 2010. However, contacts generally noted that requests for loan renewals or extensions increased at a slower pace than indicated in our last report, while requests for loan repayment rates declined further. Moreover, agricultural lenders reported that farm loans were generally less available and that collateral requirements tightened further. Reports indicated that interest rates increased for feeder cattle loans but eased for all other categories. Turning to farmland values, first-quarter land prices were above both the previous quarter and year-ago levels.