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By Dr. L. Tim Wallace (auth.)

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Those with more than 25% of their The effects of deregulation and competition in fi- loans in agricultural credits. This was far more than nancial markets have affected both the competition in any other year since the Great Depression. In among agricultural lenders and their terms of addition, the Federal Deposit Insurance Corporacredit. Rural ag-banks used to be insulated from in- tion rated more than 1100 banks as "problem" terest rate risk. Half to two-thirds of its funding banks based on its assessment of their capital, came from time deposits with low and stable in- assets, management, earnings, and liquidity terest costs, and the remaining one-third to one-half (CAMEL rating).

The trend toward greater reliance on science-based discoveries, the so-called "fusion of technology and science," has been pervasive and is expected to continue and even accelerate in the future. Total productivity growth in farm production was slow and erratic between 1880 and 1940. But between 1940 and 1981 total productivity more than doubled (Table 2). A major change in the mix of inputs has occurred. For example, farm labor declined by 78% between 1940 and 1980, and the index of labor productivity rose almost tenfold.

There is concern that these productivity rates may not continue because of a pronounced real drop in public research funding which has generated so much past farm and food sector productivity. 3% per year) than of the much higher rates realized since 1950. A greatly different picture emerges in productivity trends for the food processing and distribution sector. Recent analyses show that total productivity in food processing and distribution was almost constant between 1950 and 1972 and declined significantly between 1972 and 1977 (Table 3).

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