According to a survey of 41 agricultural banks in the Eighth District, farm household spending and capital equipment expenditures declined in the third quarter relative to the same period a year earlier. Proportionately more bankers reported lower farm income for the third quarter than was expected three months earlier. Bankers expect further declines in farm income, household expenditures, and capital expenditures in the fourth quarter. Respondents reported that farmland values rose sharply in the third quarter. Our survey found that quality farmland values in the Eighth District averaged a little more than $6,100 per acre in the third quarter, which is the highest value the Agricultural Finance Monitor has reported. A larger percentage of bankers expect quality farmland prices in the fourth quarter to be lower than they were in the fourth quarter last year. Agri­cultural loan demand in the third quarter was consistent with the expectations of bankers from three months earlier, and the average interest rate on most fixed- and variable-rate loan products declined or was unchanged from three months earlier. For this survey, we asked three special questions to assess the financial health of agricultural borrowers in our bankers' loan portfolios. The results suggest that the average agricultural borrowers' financial condition has not deteriorated over the past three years.