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                    SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C.  20549
                                     
                                     
                                 FORM 10-Q
                                     
                                     
               QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
                    THE SECURITIES EXCHANGE ACT OF 1934
                                     
                                     
                    For Quarter Ended December 31, 1998
                                     
                       Commission file number 0-1375
                                     
                                     
                             FARMER BROS. CO.
                                     
                                     
California                                                95-0725980
State of Incorporation                                Federal ID Number

20333 S. Normandie Avenue, Torrance, California             90502
Registrant's Address                                         Zip

(310) 787-5200
Registrant's telephone number


Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.  YES  [X]   NO [  ]

Number of shares of Common Stock outstanding:  1,926,414 as of December 31,
1998.



                               PAGE 1 OF 11


PART I.  FINANCIAL INFORMATION
Item 1.  Financial Statements (Dollars in thousands, except per share data)
                                     
                             FARMER BROS. CO.
                     CONSOLIDATED STATEMENTS OF INCOME
                                (Unaudited)
                                     
                                For the three months   For the six months
                                ended December 31,     ended December 31,

                                  1998      1997         1998      1997

Net sales                       $58,408   $64,062      $112,443  $123,559
Cost of goods sold               26,313    27,901        49,233    58,072
                                 32,095    36,161        63,210    65,487
Selling expense                  19,836    20,628        39,750    40,383
General and administrative
  expenses                        1,914     2,156         3,794     4,075
                                 21,750    22,784        43,544    44,458
Income from operations           10,345    13,377        19,666    21,029

Other income (expense):
  Dividend income                   582       664         1,187     1,322
  Interest income                 2,290     1,971         4,529     3,813
  Other, net                        (42)      206           358       519
                                  2,830     2,841         6,074     5,654

Income before taxes              13,175    16,218        25,740    26,683

Income taxes                      5,270     6,436        10,296    10,673

Net income                      $ 7,905   $ 9,782      $ 15,444  $ 16,010

Net income per common share      $4.10     $5.08         $8.02     $8.31

Weighted average shares
  outstanding                   1,926,414              1,926,414













The accompanying notes are an integral part of these financial statements.
                                  2


                             FARMER BROS. CO.
                        CONSOLIDATED BALANCE SHEETS
                                (Unaudited)
                                     
                                             December 31,       June 30,
                                                1998              1998
                                  ASSETS
Current assets:
  Cash and cash equivalents                  $  8,823          $  6,800
  Short term investments                      149,116           128,004
  Accounts and notes receivable, net           20,320            18,006
  Inventories                                  35,619            38,067
  Income tax receivable                           196               649
  Deferred income taxes                         2,776             2,776
  Prepaid expenses and other                      580               526
    Total current assets                      217,430           194,828

Property, plant and equipment, net             30,344            30,551
Notes receivable                                3,988             3,988
Long term investments, net                     45,401            55,801
Other assets                                   20,385            19,527
Deferred taxes                                  3,354             2,317
    Total assets                             $320,902          $307,012

                   LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
  Accounts payable                           $  9,318          $  5,605
  Accrued payroll expenses                      3,631             4,876
  Other                                         5,107             5,678
    Total current liabilities                  18,056            16,159

Accrued postretirement benefits                16,828            15,941

Commitments and contingencies                       -                 -

Shareholders' equity:
  Common stock, $1.00 par value,
    authorized 3,000,000 shares; issued
    and outstanding 1,926,414 shares            1,926             1,926
  Additional paid-in capital                      568               568
  Retained earnings                           284,142           271,395
  Accumulated other comprehensive
    income (loss)                                (618)            1,023
    Total shareholders' equity                286,018           274,912
    Total liabilities and
      shareholders' equity                   $320,902          $307,012

The accompanying notes are an integral part of these financial statements.
                                    3


                             FARMER BROS. CO.
                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (Unaudited)

                                                 For the six months
                                                 ended December 31,

                                                1998              1997

Cash flows from operating
 activities:
  Net Income                                 $ 15,444          $ 16,010

Adjustments to reconcile net
 income to net cash provided
 by operating activities:

   Depreciation                                 2,770             2,679
   Other                                          (55)              (35)
   Net loss on investments                       (158)             (279)
   Change in assets and
    liabilities:
     Accounts and notes
       receivable                              (2,349)           (2,592)
     Inventories                                2,448              (531)
     Income tax receivable                        453             2,119
     Prepaid expenses and other
       assets                                    (952)           (1,346)
     Accounts payable                           3,712               (69)
     Accrued payroll expenses
       and other liabilities                   (1,816)            2,938
     Other long term liabilities                  887               718
Total adjustments                            $  4,940          $  3,602

Net cash provided by operating
 activities                                  $ 20,384          $ 19,612












The accompanying notes are an integral part of these financial statements.
                                    4


                              FARMER BROS. CO
                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (CONTINUED)
                                (Unaudited)
                                                 For the six months
                                                 ended December 31,

                                               1998              1997
Net cash provided by operating
   activities:                               $ 20,384          $ 19,612

Cash flows from investing
   activities:
   Purchases of property, plant
    and equipment                              (2,528)           (1,026)
   Proceeds from sales of property,
    plant and equipment                            62                88
   Purchases of investments                  (325,859)         (187,662)
   Proceeds from sales of
    investments                               312,627           155,436
   Notes issued                                   (54)           (1,052)
   Notes repaid                                    88                21

Net cash used in investing
 activities                                   (15,664)          (34,195)

Cash flows from financing
 activities:
   Dividends paid                              (2,697)           (2,408)

Net cash used in financing
 activities                                    (2,697)           (2,408)

Net increase (decrease) in cash
 and cash equivalents                           2,023           (16,991)

Cash and cash equivalents at
 beginning of year                              6,800            34,174

Cash and cash equivalents at
 end of quarter                                $8,823           $17,183

Supplemental disclosure of
 cash flow information:
  Income tax payments                        $ 10,504           $ 5,830



The accompanying notes are an integral part of these financial statements.
                                     5


                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                (Unaudited)
A.   Unaudited Financial Statements

The accompanying unaudited financial statements have been prepared in
accordance with the instructions to Form 10-Q and do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements.  It is Management's opinion
that all adjustments of a normal recurring nature necessary for a fair
statement of the results of operations for the interim periods have been
made.

B.   Investments
The Company hedges interest rate risk in its portfolio of preferred stock.
Deferred losses associated with the hedge are $2,639,000 and $1,081,000 at
December 31, 1998 and June 30, 1998, respectively.

(In thousands)                  Gross      Gross
                              Unrealized  Unrealized    Fair
December 31, 1998     Cost      Loss       Gain        Value
Current Assets
  Commercial Paper    $ 61,926    (9)          -       $ 61,917
  U.S. Government
    Obligations         87,214  ( 32)         17         87,199
                      $149,140  ( 41)         17       $149,116
Non-Current Assets
Municipal debt           1,695   (11)          -          1,684
  Preferred stocks      36,713  (524)      2,917         39,106
  Liquid asset fund
    and other            4,821  (273)         63          4,611
                      $ 43,229  (808)      2,980       $ 45,401

(In thousands)                  Gross      Gross
                             Unrealized  Unrealized     Fair
June 30, 1998         Cost      Loss       Gain        Value
Current Assets
  Commercial Paper    $ 95,838     -         594       $ 96,432
  U.S. Government
    Obligations         31,608   (36)          -         31,572
                      $127,446   (36)        594       $128,004
Non-Current Assets
  U.S. Government
    Obligations       $  9,725  (151)          -       $  9,574
  Municipal debt         1,695   (11)          -          1,684
  Preferred stocks      36,504   (52)      3,978         40,430
  Liquid asset fund
    and other            4,067     -          46          4,113
                      $ 51,991  (214)      4,024       $ 55,801

                                       6


B.   Investments, CONTINUED

The contractual maturities of debt securities classified as current and non-
current available for sale are as follows:

(In thousands)                                 Fair Value

Maturities                               12/31/98     06/30/98
Within 1 year                            $149,116     $128,004
After 1 year through 5 years                1,684       11,258
                                         $150,800     $139,262

Gross realized gains from available for sale securities were $979,000 and
$535,000 at December 31, 1998 and 1997, respectively.

C.   Inventories

(In thousands)                 Processed  Unprocessed    Total

December 31, 1998
Coffee                         $ 3,672    $10,281      $13,953
Allied products                 11,480      3,927       15,407
Coffee brewing equipment         1,998      4,261        6,259
                               $17,150    $18,469      $35,619
June 30, 1998
Coffee                         $ 4,119    $10,406      $14,525
Allied products                 12,025      5,079       17,104
Coffee brewing equipment         2,191      4,247        6,438
                               $18,335    $19,732      $38,067

D.   Comprehensive Income
Effective July 1, 1998, the Company adopted Statement of Financial
Accounting Standards (SFAS 130) "Reporting Comprehensive Income".  SFAS 130
requires disclosure of total non-stockholder changes in equity in interim
periods and additional disclosures of the components of non-stockholder
changes in equity on an annual basis.  Total non-stockholder changes in
equity includes all changes in equity during a period except those
resulting from investments by and distributions to shareholders.

                             For the three months   For the six months
(In thousands)                ended December 31,     ended December 31,

                              1998        1997        1998       1997
Net income                   $7,905      $9,782     $15,444    $16,010
Unrealized investment
 gains (losses), net           (736)       (112)     (1,641)    (   45)

Total comprehensive income   $7,169      $9,670     $13,803    $16,055


                                   7

Item 2.  Management's Discussion and Analysis of Financial Condition and
Results of Operations

Fluctuating green coffee costs continue to effect Registrant's operating
results.  Competitive roast coffee prices have pressured profit margins,
even with lower green coffee costs.  The Company makes every effort to
provide competitive product pricing, and it is not known whether such
operating margins can be maintained.

Net sales for the second quarter of fiscal 1999 decreased 9% to $58,408,000
from $64,062,000 in the same quarter of the prior fiscal year.  Net sales
for the first half of fiscal 1999 decreased 9% to $112,443,000 from
$123,559,000 in the first half of fiscal 1998.  Gross profit in the second
quarter decreased 11% to $32,095,000 or 55% of sales, as compared to
$36,161,000, or 56% of sales, in the same quarter of fiscal 1998.  Gross
profit for the first half of fiscal 1999 decreased 3% to $63,210,000 from
$65,487,000 during the same period of the prior fiscal year.  Operating
expenses decreased 5% to $21,750,000 in the second quarter of fiscal 1999
as compared to $22,784,000 in the second quarter of fiscal 1998.  Operating
expenses for the first half of fiscal 1999 decreased 2% to $43,544,000 from
$44,458,000 during the same period of fiscal 1998.

Income after taxes for the three months ended December 31, 1998, reached
$7,905,000, or $4.10 per share, as compared to $7,539,000, or $3.91 per
share, in the first quarter of fiscal 1999 and $9,782,000, or $5.08 per
share, in the same quarter of fiscal 1998.  Net income for the first half
of fiscal 1999 reached $15,444,000, or $8.02 per share, as compared to
$16,010,000, or $8.31 per share, in the first six months of fiscal 1998.

Quarterly Summary of Results
(In thousands)

                  12/31/97  03/31/98   06/30/98  09/30/98  12/31/98
Net sales          64,062    58,951     57,582    54,035    58,408
Gross profit       36,161    32,249     34,388    31,115    32,095
Operating income   13,377    10,067      9,859     9,321    10,345
Net income          9,782     8,020      9,370     7,539     7,905
                                                           

(As a percentage of sales)

                  12/31/97  03/31/98   06/30/98  09/30/98  12/31/98
Net sales          100.00    100.00     100.00    100.00    100.00
Gross profit        56.45     54.70      59.72     57.58     54.95
Operating income    20.88     17.08      17.12     17.25     17.71
Net income          10.05     13.60      16.27     13.95     13.53

(In dollars)

                  12/31/97  03/31/98  06/30/98   09/30/98  12/31/98
EPS                  5.08      4.16      4.86       3.91      4.10
                                                           

Year 2000 Issues
There have been no material changes from the fiscal year end.
                                     8




Item 3.  Quantitative and Qualitative Disclosures about Market Risk

Financial Markets
Securities are recorded at fair value and unrealized gains or losses have
been recorded as a separate component of shareholders equity.  The Company
maintains two distinct portfolios of securities, both portfolios are
classified as available for sale.

The Company's portfolio of investment grade money market instruments
includes bankers acceptances, discount commercial paper, federal agency
issues and treasury securities.  As of December 31, 1998, over 93% of these
funds were invested in instruments with maturities shorter than one year.
The remaining balance matures during fiscal 2000.  This portfolio's
interest rate risk is unhedged.  Its average maturity is approximately 60
days and a 100 basis point move in the Fed Funds Rate would not have a
material effect on Registrant's results of operations.

The Company is exposed to market value risk arising from changes in
interest rates on its portfolio of preferred securities.  The Company
reviews the interest rate sensitivity of these securities and (a) enters
into "short positions" in futures contracts on U.S. Treasury securities or
(b) holds put options on such futures contracts in order to reduce the
impact of certain interest rate changes on such preferred stocks.
Specifically, the Company attempts to manage the risk arising from changes
in the general level of interest rates.  The Company does not transact in
futures contracts or put options for speculative purposes.

The following table demonstrates the impact of varying interest rate
changes based on the preferred stock holdings, futures and options
positions, and market yield and price relationships at December 31, 1998.
This table is predicated on an instantaneous change in the general level of
interest rates and assumes predictable relationships between the prices of
preferred securities holdings, the yields on U.S. Treasury securities, and
related futures and options.

Interest Rate Changes
(In thousands)
                          Market Value of                  Change in Market
                    Preferred    Futures and     Total     Value of Total
                    Securities   Options      Portfolio    Portfolio

- -200 basis points   $16,576.7    $(1,480.9)  $15,095.8      $2,437.2
      ("b.p.")
- -100 b.p.            44,414.3       (667.4)   43,746.9       1,088.3
Unchanged            41,775.6        883.0    42,658.6           0.0
+100 b.p.            38,678.5      3,727.9    42,406.4        (252.2)
+200 b.p.            35,591.6      6,536.2    42,127.8        (530.8)

The number and type of futures and options contracts entered into depends
on, among other items, the specific maturity and issuer redemption
provisions for each preferred security held, the slope of the Treasury
yield curve, the expected volatility of Treasury yields, and the costs of
using futures and/or options.  At December 31, 1998 and 1997 the hedge
consisted entirely of put options on the U.S. Treasury Bond futures
contract.
                                     9


Item 3  Quantitative and Qualitative Disclosures about Market Risk
(CONTINUED)

Commodity Price Changes
The Company is exposed to commodity price risk arising from changes in the
market price of green coffee.  Registrant prices its inventory on the LIFO
basis.  In the normal course of business, the Company enters into commodity
purchase agreements with suppliers, and futures contracts to hedge exposure
to inventory price fluctuations.  The Company does not transact in futures
contracts or put options for speculative purposes.

The following table demonstrates the impact of changes in the price of
green coffee on inventory and hedge instruments at December 31, 1998.  It
assumes an immediate change in the price of green coffee, and the
demonstrable relationship between the price of green coffee and the
valuations of coffee index futures and put options and relevant commodity
purchase agreements at December 31, 1998, and does not take into account
fluctuations of inventory levels and futures and options activity.

Commodity Risk Disclosure
(In thousands)
                              December 31, 1998
                              Market Value of                Change in
Coffee Cost    Coffee         Futures                        Market
  Change       Inventory      & Options         Total        Value

- - 10%          $13,953,000    $  977,000     $14,930,000    $1,423,000
unchanged       13,953,000      (446,000)     13,507,000             -
+ 10%           13,953,000    (1,869,000)     12,084,000    (1,423,000)

At December 31, 1998 the hedge consisted of commodity futures and commodity
purchase agreements.


PART II  OTHER INFORMATION

Item 1.  Legal proceedings.                           not applicable.

Item 2.  Changes in securities.                                 none.

Item 3.  Defaults upon senior securities.                       none.

Item 4.  Submission of matters to a vote of
         security holders.

         The Annual Meeting of Shareholders of Farmer Bros. Co. was
         held on November 30, 1998.  Holders of the Company's common
         stock were entitled to one vote per share of common stock
         held.

         Six directors were elected at the meeting, each to serve for
         the coming year and until any successors are elected and
         qualify.  The following persons were elected as directors:
         Roy F. Farmer, Roy E. Farmer, Catherine E. Crowe, Lewis A.
         Coffman, Guenter W. Berger and John M. Anglin.  There were
         1,750,960 shares for election and 10,150 shares against.

                                    10


PART II  OTHER INFORMATION, (CONTINUED)

         The proposal to appoint Ernst & Young LLP as the independent
         accountants for the Company for the year ended June 30, 1999
         was approved with 1,759,302 shares in favor of the
         resolution, 401 shares against and 1,415 shares abstaining.

Item 5.  Other information.                                     none.

Item 6.  Exhibits and reports on Form 8-K.
(a)  Exhibits.
      (2) Plan of acquisition, reorganization,
          arrangement, liquidation or
          succession                                  not applicable.

      (4) Instruments defining the rights of
          security holders, including
          indentures.                                 not applicable.

     (11) Statement re computation of per
          share earnings.                             not applicable.

     (15) Letter re unaudited interim financial
          information.                                not applicable.

     (18) Letter re change in accounting
          principles.                                 not applicable.

     (19) Report furnished to security holders        not applicable.

     (22) Published report regarding matters
          submitted to vote of security holders.      not applicable.

     (23) Consents of experts and counsel.            not applicable.

     (24) Power of attorney.                          not applicable.

     (27) Financial Data Schedule            See attached Form EX-27.

     (99) Additional exhibits.                        not applicable.

(b)  Reports on Form 8-K                                        none.
                                SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

Date:  February 12, 1999           FARMER BROS. CO.
                                   (Registrant)

                                   John E. Simmons
                                   John E. Simmons
                                   Treasurer and
                                   Chief Financial Officer



  


 5
 1000
       
                             
                   3-MOS
                          JUN-30-1999
                               DEC-31-1998
                                            8823
                                    149119
                                    20320
                                       520
                                      35619
                                217430
                                           88334
                                   57990
                                  320902
                            18056
                                              0
                                0
                                          0
                                          1926
                                      284092
                    320902
                                          58408
                                 58408
                                            26313
                                    21750
                                     0
                                     0
                                   0
                                  13175
                                      5270
                               7905
                                       0
                                      0
                                            0
                                      7905
                                     4.10
                                     4.10