An update on the farm economy. From: Federal Reserve Bulletin | Date: December 1, 1991| Author: Rosine, John; Walraven, Nicholas | COPYRIGHT 1991 Board of Governors of the Federal Reserve System. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group.Copyright information

The factors contributing to the weak 1991 farm economy are not likely to cause the extensive damage experienced in the middle 1980s. Weak farm prices are ameliorated by lean inventories, restraint of crop production, lowered debt and farm consolidation. 1991 net farm income will range from $41 to $46 billion, far above the 1981-86 average. Farm lenders have also strengthened their positions by keeping a low ratio of loans to deposits, as low as 1/2 in some areas.

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