This paper applies Random Effect Model with panel data to analyze and test the impact on asset/liability management and profitability of Farmers' Associations as regulations on interest rate have been removed in 1989. For our study purposes, the 262 Farmers' Associations are classified into three categories: the urban area, the intermediate area, and the rural area Farmers' Associations. The interest rate liberalization has affected greatly both the A/L management and the profitability of all Farmers' Associations. The empirical results reveal that Farmers' Associations of all categories "borrow long and lend short" in their operations and have improved the speed of A/L management since the interest rate liberalization. The empirical results also show that, compared with the intermediate area and the rural area Farmers' Associations, the urban area Farmers' Associations have better hedged ability and thus have greater adjustment to the interest rate liberalization against interest rate fluctuations. These empirical findings can help the authorities set up appropriate policies to monitor the maturity risk exposure of different types of Farmers' Associations.