Despite the 1988 drought, farm financial conditions remained similar those of 1987, according to this report summarizing the latest information from the Farm Costs and Returns Survey (FCRS) on the financial performance of farmers. Average farm profits were modestly higher, but fewer farms were profitable. More farms had no outstanding liabilities, and fewer had high debt compared with assets. The FCRS provides an annual source of detailed information on the financial characteristics, tenure, business, organization, capital expenditures, production expenditures, receipts, resource base, and production practices of U.S. farms and ranches.