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131080 1 (1986-09-25)

handle is hein.gao/gaobactug0001 and id is 1 raw text is: )IS1U(VJ


              United States General Accounting Office
                      Washington,  D.C.  20548

                                          FOR RELEASE ON DELIVERY
                                          EXPECTED AT 10:00 A.M.
                                          SEPTEMBER 25, 1986

                           STATEMENT  OF
                         BRIAN P. CROWLEY
                     SENIOR ASSOCIATE DIRECTOR
      RESOURCES, COMMUNITY, AND ECONOMIC DEVELOPMENT  DIVISION
                            BEFORE THE
       SUBCOMMITTEE ON GENERAL OVERSIGHT AND  INVESTIGATIONS
                              OF THE
      HOUSE COMMITTEE ON BANKING, FINANCE, AND URBAN AFFAIRS
                              ON THE
            FINANCIAL CONDITION OF AMERICAN AGRICULTURE
                      AS OF DECEMBER  31, 1985


Mr. Chairman and Members of the Subcommittee:


     We are here today at your invitation  to discuss our recently
issued report entitled Farm Finance:  Financial Condition  of
American Agriculture as of December 31,  1985 (GAO/RCED-86-191BR,
Sept. 3, 1986).  The report updates selected  information included
in our earlier report entitled Financial Condition  of American
Agriculture (GAO/RCED-86-09, Oct.  10, 1985). Also,  we will
discuss some new 1986 information not included  in our recently
issued report.


     In our October 1985 report, based primarily on  calendar year
1984 and earlier data, we stated that .  . . the financial
condition of farmers and their lenders has deteriorated  rapidly
since 1980 and that financial stress continues  to grow.  In our
latest report, we provide information showing  that the adverse
economic and financial conditions facing agriculture  continued in
1985.  More recent data show that this trend has  not abated in
1986.


     Today, I will provide some brief background  information and
then discuss (1) the economic environment facing agriculture,





                                                             131080

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