Apparently the Farm Credit Association has been more aggressive in
 marketing its loans than have commercial banks. This is particularly true
 in Florida, where other investment opportunities for banks are apparently
 more attractive. However, despite this explanation, this declining activity
 by commercial banks is a little surprising.
 It is difficult to find evidence suggesting that farm production and
marketing risks are greater in Florida, or in the Southeast than elsewhere.
Output prices for Florida's major agricultural enterprises have not fluc-
tuated any more than have nationwide agricultural enterprises in recent
years. In fact, a weighted price index of the state's major 34 enterprises
suggests less fluctuations than for grain and soybeans in the Midwest.11,12
Other evidence shows much higher cash receipts from primary marketing and
other cash income per farm in Florida than the national average.13
 It is particularly noticable that both these sources of income have
shown a steady and continuous upward trend at least since 1967, unlike the
situation in many other states. Cash receipts from farm marketing have
risen two and a half times between 1967 and 1975 and farm income from other
sources has more than tripled.14 Both figures should provide reassurance
for lenders.



 lBrooke, D.L., "Florida Farm Prices," Econ. Info. Rpt. 89, Food and
Resource Econ. Dept., Ag. Expt. Stns., I.F.A.S., University of FL., Gaines-
ville, June 1978, pp.6-7,p.15.

 U.S.D.A., "Agricultural Statistics," Gov't. Printing Office, Washing-
ton, D.C., 1978. This index obviously pools the individual crop risk into
an aggregate and therefore cannot show that some enterprises involve greater
risks than others. While this micro viewpoint would be important for an area
where this crop was grown, the focus here is at the state level and looks at
state wide lending.

 13Eastwood, F.A., "Florida Aggregate Primary Producer Incomes and Mar-
keting Margins," 1967-75, Econ. Info. Rpt. 74, Food and Resource Econ. Dept.,
Coll. of Ag., Coop. Extn. Service, I.F.A.S., Univ. of FL., Gainesville, June
1977, p.3.

 1The quoted 1975 figures are $3.33 billion and $460 million respectively.