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Abstract

Total farm business debt is expected to rise in 1997 for the 5th consecutive year to about $160 billion. Lenders and farmers, for the most part, enter 1997 in a financially strong position. Some problems do exist, but are mostly confined to cattle producing regions in the Plains and Southwest. Over the longer term, farm credit markets are likely to be influenced by evolving structural changes occurring in the financial and agricultural sectors. The long-term outlook is going to be determined by who is going to borrow and who is going to lend.

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