That's why in 2001, despite low commodity prices and an ongoing exodus from rural America, farmland values in places like Iowa were hitting all-time highs.

The 1987 rise in farmland values -which includes buildings - compares with an average annual decline of $80 billion in 1984, 1985 and 1986.

In Illinois, where farmland values have declined in just five years since 1970, land prices are also at record levels.

"The state should escalate this fight, make as many people aware as possible of the land's historical and farmland value," she said.

But the slide in farmland values was expected to continue, further eroding assets and reducing the borrowing power of farmers.

In other words, heirs will only have to pay estate taxes on preserved farmland values, and not full development values.

Each year, about 400 houses are built in the county, and farmland values jump 25 percent.

Their plan would preserve farmland values.

The survey of 500 agricultural bankers in five Midwestern states indicated that farmland values had risen 3.2 percent in the last three months of 1987, the fourth consecutive quarterly increase.

The long slide in farmland values appears to be ending as major agricultural lenders are beginning to sell much of the land they have taken over from troubled farmers.