UNITED STATES

	SECURITIES AND EXCHANGE COMMISSION

	Washington, DC 20549

	FORM 10-Q

	(Mark One)

[X]	Quarterly Report Pursuant to Section 13 or 15(d) of the 	Securities
 Exchange Act of 1934

For the quarterly period ended      August 31, 1998                	 

	or

[ ]	Transition Report Pursuant to Section 13 or 15(d) of the Securities
 Exchange Act of 1934

For the transition period from               	   to             	 

Commission File Number:       000-19320                      	 

                     Ag Services of America, Inc.            	 
	(Exact name of registrant as specified in its charter)

             Iowa                              42-1264455    	 
   (State or other jurisdiction of 		   (I.R.S. Employer
    incorporation or organization)		    Identification No.)

 2302 West First Street, Cedar Falls, Iowa           50613   	 
  (Address of principal executive offices)		(Zip Code) 

                      (319) 277-0261                         	 
	(Registrant's telephone number, including area code)

                        Not Applicable                       	 
(Former name, former address and former fiscal year, if changed since last
 report.)

  Indicate by check mark whether the registrant (1) has filed all reports
 required to be filed by Section 13 or 15(d) of the Securities Exchange Act
 of 1934 during the preceding 12 months (or for such shorter period that the
 registrant was required to file such reports), and (2) has been subject to
 such filing requirements for the past 90 days.
							[X] Yes     [ ] No

5,209,404 common shares were outstanding as of October 10, 1998.

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                     	AG SERVICES OF AMERICA, INC.

                               	INDEX

                                                       												Page

PART I.  FINANCIAL INFORMATION

  Item 1.  Financial statements:
    Consolidated condensed balance sheets, August 31, 1998
	     (unaudited) and February 28, 1998					                         1
    Unaudited consolidated condensed statements of income,
	     three months and six months ended August 31, 1998 and 1997		   2 	 
    Unaudited consolidated condensed statements of cash
	     flows, three months ended August 31, 1998 and 1997	            3
    Consolidated statement of stockholders' equity, 
	     three months ended August 31, 1998 	                  			  	   4
    Notes to consolidated condensed financial statements 	
    	 (unaudited)                                   								       4-6

  Item 2.  Management's discussion and analysis of
    financial condition and results of operations	         	      6-11


PART II.  OTHER INFORMATION


  Item 6.  Exhibits and reports on form 8-K:	         	    	     	  11 
    (a)  Exhibits
	    (11)  Statement re:  computation of per share 
        			earnings						                                     	  	  12





Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


		      AG SERVICES OF AMERICA, INC. 
 							(Registrant)

				    /s/ Brad D. Schlotfeldt        
				    Brad D. Schlotfeldt
				    Vice President of Finance & Treasurer
 				   (Principal Financial & Accounting Officer)

Date: October 16, 1998


                                      -11-

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AG SERVICES OF AMERICA, INC.                 ARTICLE 5 OF REGULATION S-X
2ND QTR 10-Q                                 FINANCIAL DATA SCHEDULE