Production plans indicate large plantings, and subsoil moisture conditions are excellent. Large crops suggest further downward pressure on prices. Livestock prices have been rising, but most experts project a further decline in net farm income. Farm land prices are declining and delinquencies and bankruptcies are rising. Heavy debts at high interest rates, combined with lower income, could cause further deterioration in the financial condition of agriculture.
Uncertainty continues to characterize the financial markets.
Business loan demand is described as weak or flat in most districts. Business credit ratings are being downgraded, and more loans require special attention. New York experts say business liquidity continues to deteriorate, and more ratings will be downgraded soon. Mortgage credit is very tight, both for housing and commercial projects. Usury rates are impeding credit use in some states, especially for credit cards and auto loans.