Federal actions could improve efficiency and competition in the market for farm loans by lowering barriers to market entry and reducing market segmentation. Such actions might include changes to existing charters of Government-sponsored enterprises (GSE's), regulatory reforms affecting commercial banks and GSE's, and continued antitrust vigilance. Federal action may be justified because 93 percent of rural banking markets are still classified as noncompetitive despite past Federal action. Previous action improved efficiency by integrating isolated rural credit markets with national money markets and by promoting market innovation.