The Farm Credit System has steadily consolidated at the association level. From 390 associations at the end of 1987, the FCS shrank to 203 associations at the end of 1997, to 133 at the end of 2000, and to 99 at the end of last year. Although there have been no association mergers so far this year, a review of association call reports as of the end of 2002 suggests that far more consolidation will occur within the FCS, creating more large, multi-state associations focused primarily on serving larger farmers and ranchers while ignoring smaller farmers and ranchers.