Farm income declined in the first quarter of 2014 from a year earlier according to a survey of 49 agricultural banks in the Eighth District. However, farm income in the first quarter turned out to be modestly stronger than respondents expected three months earlier. Quality farmland prices fell slightly in the first quarter, a reversal of the gain reported in the fourth quarter of 2013. Despite the decline in value, quality farmland prices in the first quarter were 7.5 percent higher than a year earlier. Pro­por­tionately more respondents continue to expect farm income and quality farmland values to decline over the next three months compared with year-earlier levels. Simi­larly, respondents also expect farm household expenditures and farm equipment expenditures in the second quarter of 2014 to be lower than a year earlier. This survey included one special question: The vast majority of bankers' responses indicate that the expectation of lower farm income in 2014 has not changed the highly competitive agriculture loan market.