According to the latest survey of agricultural bankers in the Eighth Federal Reserve District, a solid majority reported that farm income declined in the third quarter of 2016 relative to a year ago. Consistent with previous surveys, proportionately more bankers continue to report that falling farm income is pressuring farmers to trim their household expenditures and farming- and ranching-related capital outlays. Given the difficulties in the farm sector, it is perhaps surprising that our survey results showed that quality farmland values were unchanged and ranch or pastureland values were up slightly from a year earlier in the third quarter. Nonetheless, cash rents for both quality farmland and ranch or pastureland declined modestly in the third quarter. Our survey results also revealed that demand for loans in the third quarter was a bit stronger than what was expected three months earlier, while the availability of funds mostly met expectations. Loan repayment rates were slower in the third quarter, but consistent with bankers' expectations from three months earlier. Our two special questions focused on those farmers who are experiencing loan repayment issues. According to our lender survey, the largest increase in repayment problems is for operating lines of credit. A majority of bankers believe that, in response, unpaid portions of operating lines of credit will require additional collateral to roll over this debt.