
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, February 28, 1991                   TAG: 9102280106
SECTION: BUSINESS                    PAGE: C6   EDITION: METRO 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Short

VIRGINIA FARMERS IN GOOD SHAPE

With farmland prices stable and the demand for farm loans down, it appears Virginia's farmers generally are on financially sound footing, according to a new Federal Reserve Bank of Richmond report.

"Prices of farmland across the state were virtually unchanged over the year. Bankers expect stability is still ahead. Demand for agricultural loans was somewhat weaker over the year, but most of the bankers still characterize demand to be within normal activity levels," said Ray Owens, the Fed's agricultural economist.

On the down side, Owens said, bankers still want greater-than-normal collateral for agricultural loans.

The value of an acre of farmland averaged $1,230 in 1990's fourth quarter, according to the survey. This compares with $1,214 in the fourth quarter of 1989 and $1,241 in third quarter of 1990.

Eighty percent of the bankers surveyed said they were actively seeking farm loans.

Owens said the survey found that bankers were expecting loan demand to pick up in the next three months. The only exception were loans for dairy operations.

"Generally, they expect loan demand to be only marginally greater than at the present," Owens said.

by CNB