The Farm Credit System reported a 27% increase in nonperforming loans in the 3rd quarter of 1998 and suggested that more bad news is on the way. A November 10, 1998, news release issued by the Federal Farm Credit Banks Funding Corp., FCS' funding arm, stated that results going forward may be impacted by certain adverse conditions currently being experienced in the agricultural economy. While the FCS obviously is going to be impacted by the tough times many farmers and ranchers have experienced in 1998, as will commercial banks, FCS may soon begin eating the bitter fruit of its increasingly aggressive loan pricing.