Full text of Agricultural Survey : [First Quarter 1989]

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FEDERAL RESERVE BANK OF DALLAS

STA1°) " ij~'RELEASE

QUARTERLY SURVEY OF AGRICULTURAL CREDIT CONDITIONS
ELEVENTH FEDERAL RESERVE DISTRICT
Preliminary estimates from the April 1, 1989 survey indicate a slight
reduction in District land values, although land values in the High Plains
continue to increase.

Agricultural lenders

expe~t

farmland values to remain

stable over the next quarter.
District dryland values dropped 1.7 percent from their January 1, 1989
levels.
1989.

Irrigated land values dropped 4.1 percent during the first quarter of
Ranchland values continued a 10 year decline,

~alling

nearly 3 percent

in the first quarter of 1989.
Interest rates continued to climb during the first quarter of 1989.

The

average variable-rate on farm operating loans was 13.50 percent on April 1,
1989, compared with 12.80 percent on January 1, 1989, and 11.48 percent on
April 1, 1988.

The average fixed-rate on farm operating loans on April 1, 1989

was also 13.50 percent.

This is up from 12.79 on January 1, 1989 and 11.87 on

April 1, 1988.
The survey indicates a favorable financial position for District
agricultural lenders.

Funds are becoming more available and the rate of loan

repayment remains strong, despite falling slightly this quarter.

Demand for

loans slowed somewhat in the first quarter, although demand remains strong in
drought afflicted areas.

Most agricultural lenders would like to increase the

volume of loans to farmers or ranchers.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

AGRICULTURAL CREDIT CONDITIONS AT SURVEY BANKS IN THE ELEVENTH DISTRICT
TOTAL llTH FEDERAL RESERVE DISTRICT
APRIL 1, 1989
1989

1988

Apr 1 Jul 1 Oct 1 Jan 1 Apr 1
Index numbers computed by subtracting
the percent of bankers that responded
"lower" from the percent that
responded "higher" and adding 100

Indexes

-------------------------------------

-------

Demand for loans ...............

96

96

111

109

102

Availability of funds ..........

135

132

122

134

139

Renewals or extensions .........

83

85

88

83

82

Rate of loan repayment .........

118

119

112

119

112

Amount of collateral required ..

156

156

154

149

146

Number of referrals to:
Correspondent banks .........

86

88

90

87

96

Nonbank credit agencies .....

91

91

94

83

95

50.4
59.1

49.9
59.5

52.3
60.3

48.7
58.0

45.9
57.3

32
18
21
18
11

30
23
20
18
9

26
18
23
19
14

32
20
27
13
7

38
23
22
11
5

Loan-Deposit Ratio (percent)
Banks Desired Ratio
Distribution of loan-deposit ratios
(percent of banks reporting)
less than 41% ................. .
41% through 50% ............... .
51% fhrough 60% ............... .
61% through 70% ............... .
71% or more ................... .

---------------------------------------------------------------------------Interest Rates (percent)
Feeder cattle loans

Other farm operating
loans
Intermediate-term
farm loans
Long-term farm real
estate loans

Fixed ......
Variable ...

11.80 11.87 12.43 12.63 13.31
11.35 11.65 12.34 12.79 13.49

Fixed ......
Variable ...

11.87 11.96 12.55 12.79 13.50
11.48 11.75 12.41 12.80 13.50

Fixed ......
Variable ...

12.09 12 .16 12.61 12.82 13.55
11.48 11. 75 12.44 12.82 13.52

Fixed ......
Variable ...

11. 98 11.94 12.41 12.49 13.20
11.33 11. 61 12.24 12.47 13.20

FARM AND RANCH REAL ESTATE VALUES
(Average Dollars per Acre)
April 1, 1989

Date
80Ql
80Q2
80Q3
80Q4
81Ql
81Q2
81Q3
81Q4
82Ql
82Q2
82Q3
82Q4
83Ql
83Q2
83Q3
83Q4
84Ql
84Q2
84Q3
84Q4
85Ql
85Q2
85Q3
85Q4
86Ql
86Q2
86Q3
86Q4
87Ql
87Q2
87Q3
87Q4
88Ql
88Q2
88Q3
88Q4
89Ql p
NOTES:

----------ELEVENTH DISTRICT---------

---------------TEXAS-------------

Dryland
Cropland

Dryland
Cropland

$

a.
b.

609
617
635
660
683
696
710
721
743
750
768
759
753
756
772
800
811
823
805
798
774
759
740
717
684
639
607
595
583
571
562
558
567
573
572
564
554

Irrigated
Cropland
$

866
880
911
941
977
973
993
980
996
970
964
967
984
993
968
944
929
916
905
889
880
833
794
729
697
656
638
624
611
601
595
593
613
635
650
630
604

Ranch land
$

320
326
334
342
353
369
379
390
398
398
401
403
430
461
481
479
495
503
521
507
503
484
474
450
435
411
396
380
375
371
367
357
354
348
342
329
320

$

563
574
589
612
633
644
655
662
691
707
736
730
726
727
746
776
790
803
787
781
759
750
735
713
677
634
606
599
590
580
571
565
573
578
576
568
558

Irrigated
Cropland
$

808
822
836
857
889
889
897
878
908
902
911
908
918
919
903
900
897
895
876
864
842
797
756
698
666
621
603
590
585
576
575
576
586
611
623
617
590

Ranch land
$

381
386
395
404
423
424
439
443
476
487
500
502
538
568
595
593
603
614
640
646
645
618
607
576
554
521
502
486
481
476
472
457
454
446
436
417
403

All series completely revised in November 1986.
A three-period, centered moving average is used to reduce the degree
of sampling error. The last values of each series are the estimates.
Values for the latest period will be revised subsequently.
c. Quarter dates are: QI: April 1, Q2: July 1, Q3: October 1,
Q4: January 1.
p - Preliminary estimate.

1
2
3
4
5
6
7
8
9
10
11
12
13

Northern High Plains
Southern High Plains
Northern Low Plains
Southern Low Plains
Cross Timbers
North Central Texas
East Texas
Central Texas
Coastal Texas
South Texas
Trans-Pecos and Edwards Plateau
New Mexico
Louisiana

ELEVENTH FEDERAL RESERVE DISTRICT

ELEVENTH DISTRICT' RURAL REAL ESTATE VALUES APRIL 1, 1989
AND PERCENTAGE CHANGES FROC JANUARY 1, 1989
AND APRIL 1, 1988. ALL LAND VALUES
IN DOLLARS PER ACRE

-----------RANCHLAND--··-···-----

··--------------------------CROPLAND-·----------------·----------·-·-IRRIGATED
DRY LAND
.Value Percent Change from
Value Percent Change from
$
$
Banks'
1/1/89 4/1/88
Banks'
1/1/89 4/1/88

Region

Banks'

Value Percent Change from
$
1/1/89 4/1/88

I

-o.o

89
4
4

604
739
695

-4.1
-3.4
-2.2

·1.5
-0.0
·17.0

-1. 7
0.6
1.8
4.1
-0.8
3.9
0.8
-3.3
-4.9
-5.3
·0.8

-2.5
7.9
10.4
4.3
-2. 1
4.7
-7 .1
-5.4
·10.4
7.9
-4.5

81
21
17
7
6
3
2
0
8
5
5

590
453
558
446
680
786
539

-4.4
1.3
2.0
2.6
3.6
4.1
-28.2

0.7
5.2
14.1
1.2
1. 7
-6.4
-34.9

928
703
855

-7.0
-14.8
-4.0

-13.5
-8.4
-5.2

-9.1

·12.1

7

861

-21.9

·6.1

DISTRICT
Northern Louisiana
Southern New Mexico

148
5
4

554
541
205

-1. 7
-2. 1
-2.0

TEXAS
Northern High Plains
Southern High Plains
Northern Low Plains
Southern Low Plains
Cross Timbers
North Central Texas
East Texas
Central Texas
Coastal Texas
South Texas
Trans-Pecos and
Edwards Plateau

139
22
17
10
10
9
31
8
13
7
6

558
256
339
309
430
513
730
676
898
842
572

6

583

-2.3
0.4

.

I

~
I

151
1
4

320
446
80

·2.9
8.4
5.9

-9.7
32.8
19.9

146
21
10
10
10
9
30
16
15
6
7

403
141
142
173
196
397
595
625
818
557
471

-3.6
0.4
1.5
9.8
-3.6
-2.6
-3.7
-6.4
-5.1
-18. 7
·0.6

-11.4
·1.0
-0.3
3.5
·11. 7
·4.2
-12.8
-13. 1
-6.4
-12.3
-1.2

12

386

-2.4

-19. 1

' See attached District Map for regional divisions.
• Nunber of Banks Reporting.
NOTES:

a.
b.
c.

Regional land values based on a small nunber of reporting banks should be used with caution.
All values preliminary.
No response or not enough responses is indicated by NR.

.,