This survey of North Carolina farmers focuses on the impact of important social changes and their interplay with ongoing changes in agriculture. It provides information for policymakers and education researchers to prepare for possible changes in the rural education system. State farmers were interviewed in 1987 and again in 1988. Of 883 people who completed the first of two telephone interviews, 158 had left agricultural production by the following year. Farmers were generally more optimistic about their future in 1988. Farm income averaged about 50% of total family income. Only 28% of the farmers reported that farming generated more than 80% of the family income. Farmers seemed to have been avoiding the risk of new commodities. Only 6% indicated starting new crop or livestock activities during the previous 2 years. About 40% of the farmers reported debts as of January 1988, with most owing less than $40,000. Most farmers did not report any severe economic hardships during 1987. Substantial differences existed among farmers and ex-farmers. Ex-farmers were slightly older, had small farms and lower incomes, and were more likely to be black or female. Only 36% of farmers reported having a land conservation plan. Farmers in the northeastern district reported the most serious drought losses. Peanut and soybean producers reported more losses than producers of other commodities. Almost 80% reported they had not received any federal drought assistance. More than 40% of farm operators reported "very high" or "high" levels of stress. Eight of 10 farmers reported having"good" or "fair" health. Almost half of the farm operators reported that they could not read at a level they feel is adequate. Results suggest that 7-12% of the respondents were illiterate. (TES)