Farmers' Expectation About Their Ability to Remain in 

 Farming 



According to a state survey, over half of all 

 Montana farmers in 1985 believed they would be out of 

 business in five years. •'■-^ 



In southwestern Montana, where economic conditions 

 were especially poor during 1985, 82% of all producers 

 said they would not survive the next five years. ^ 



Financial Condition of Montana Banks 



The financial problems of Montana farmers have been 

 transmitted to Montana banks. According to state 

 banking regulators, 59 banks in Montana were on the 

 troubled bank list as of yearend 1986. Of these banks, 

 39 were state-chartered banks and 20 were federally 

 chartered. These troubled banks comprised 34.5% of the 

 171 financial institutions doing business in Montana.^ 



An examination of Montana bank financial statements 

 shows that about one-third of all banks lost money in 

 1986,^ some to the extent that they are reaching the 

 level of capital impairment .-'■^ Overall, those banks 

 with serious financial problems were engaged in 

 substantial agricultural loan activity. ■'■■ 



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