1980 developments in rural credit markets
The volatility in interest rates and credit
demands in national markets last year was
more evident in rural areas than in past cyclical
swings of the economy. The increased
volatility in rural credit markets partially reflected
bleak farm income prospects and
uncertainties about the intent and implications
of the credit controls imposed in mid-
March. But the increased reliance of agricultural
banks on interest-sensitive deposits was
probably the major factor contributing to the
greater volatility in rural credit markets.
