The Farm Credit System (FCS) is a major competitor in the agricultural loan market, having reached a lending peak of $80.5 billion in loans outstanding in 1984. For the past decade, however, FCS loans have declined due to the adoption of a relatively conservative management approach designed to rebuild its capital base. With diminishing market prospects, the FCS is seeking to increase its portfolio by requesting expanded lending authorities. The recent loan performance of the district Farm Credit Banks is summarized in light of current discussions involving expanded powers. Year-end data from district annual reports for 1986-1992 are used to highlight trends in Farm Credit Bank portfolio sizes, nonaccrual loans, long-term mortgage loans, and shifts in portfolio composition. In general, lackluster FCS lending results during the period reviewed point to the need for a revised FCS mandate or reconsideration of its public purpose role.