The condition of the 2,599 farm banks in the US continues to be strong. They are increasing their capital levels, meeting loan demand , and growing deposits. While the economy has caused bank assets quality to weaken slightly, farm banks remain well positioned and profitable. Despite reduced income levels in 2002, agricultural producers also continue to be in a relatively strong financial position. Demand for agricultural credit continued its upward trend in 2002, expanding by 5.1%. Marking the 10th consecutive increase, total outstanding farm credit reached an estimated $201.9 billion in December 2002. Total assets for all farm banks reached $225 billion in 2002, up almost 6% from $213 billion in 2001. Agricultural loans for farm real estate and production at farm banks grew by 6%, from $41 billion in 2001, to $44 billion as of December 2002.