The structure of the financial services industry in rural areas is undergoing substantial transformation. The consolidation and restructuring of rural financial markets, coupled with the fundamental changes in agriculture, are affecting the delivery of credit to agricultural producers. The ongoing concern is that larger regional institutions may not have the same expertise or motivation to reinvest in local production processes. A reduction and consolidation of physical facilities in rural areas may also confuse local customers or give a perception of a locally disinterested institution. The extent that rural banks have been involved in consolidation and the level of agricultural lending affected are examined.