The agricultural banking industry remained strong throughout the relatively mild and short-lived recession. Bank earnings, capital levels, and asset quality are strong by historical standards, and the industry as a whole is better prepared to deal with potential problems than in the past. In keeping with these trends, the financial conditions of all banks that lend predominantly to farmers remained stable through 2001 and is expected to further improve in 2002. Agricultural credit continued its upward trend in 2001, expanding 4.8%.
