Contents: The situation in general -- Farm real estate values (Fewer States showed losses; declines generally small - Earnings generally well sustained, but down in some areas - Year's earnings in Northeast off, and values down slightly - Farm abandonment in the Northeast continues - Conversion to residential uses continues in the Northeast - South Atlantic values off in an adverse season - Values in most South Central States continued to decline slightly - Far western earnings continued on sustaining side of values - Mid-western values showed smallest decline in years - Iowa values showed smallest decline since boom broke - Little change downward shown in prices farmers pay - Other factors involved in continued declines in value -- Changes in farm ownership (General decline shown in foreclosures - Foreclosures fewer in most mid-Western States - Forced sale rate generally still high - Volume of voluntary sales generally down - Buyers mostly local farmers buying for operation) -- Farm credit (Mortgage credit extension continued on more conservative basis -- Farm-mortgage rates affected by high rates in money market) -- Farm real estate taxes (New data show little reduction in burden of taxes on farm real estate - Little change in farm-tax outlook) -- Sources of data and methods of compilation (Index number of farm real estate values - Changes in farm ownership - Character of voluntary buying) -- Literature cited.