WASHINGTON — While most lending sectors are still struggling to recover from the financial crisis, regulators are turning a nervous eye to one area that is thriving: agricultural lending.

As housing and commercial credit lies dormant, farm loans are rising, buoyed by skyrocketing property values in the agricultural industry. But rather than hold up the sector as a shining exception to the rest of the industry's malaise, the Federal Deposit Insurance Corp. is telling banks to watch out for another asset bubble.

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