8-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                       Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934

                                December 21, 2006
                                -----------------
                        (Date of earliest event reported)

                           Farmers & Merchants Bancorp
                           ---------------------------
             (Exact name of registrant as specified in its charter)

                                    Delaware
                                    --------
                 (State or other jurisdiction of incorporation)


                000 - 26099                          94-3327828
                -----------                          ----------
          (Commission File Number)        (IRS Employer Identification No.)


                 111 West Pine Street, Lodi, California 95240
                 --------------------------------------------
              (Address of principal executive offices) (Zip Code)


                                 (209) 367-2300
                                 --------------
              (Registrant's telephone number, including area code)


                                 Not Applicable
                                 --------------
          (Former name or former address, if changes since last report)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[ ]  Written communications pursuant to Rule 425 under the Securities Act (17
     CFR 230.425)
[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
     240.14a-12)
[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b))
[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(C))



Item 8.01 Other Events
          ------------

Attached  as  Exhibit 99.1 - Press release dated December 21, 2006, announcing a
cash  dividend of $4.80 per share, an increase from the $4.50 per share declared
last  year.  The  cash dividend will be paid on January 2, 2007, to stockholders
of  record  on  December  15,  2006.

Item 9.01 Financial Statements and Exhibits
          ---------------------------------

(c)     Exhibits:

        99.1     Press release announcing cash dividend.


                                    SIGNATURE

     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 hereunto duly authorized.

                                   FARMERS & MERCHANTS BANCORP


                                   By   /s/ Stephen W. Haley

                                        Stephen W. Haley
                                        Executive Vice President
                                        & Chief Financial Officer


Date:  December 21, 2006

EX-99.1

                                                                    EXHIBIT 99.1


                           FARMERS & MERCHANTS BANCORP
                             DECLARES CASH DIVIDEND

The  Board  of  Directors  of  Farmers  &  Merchants Bancorp has declared a cash
dividend  of  $4.80 per share, a 6.7% increase over the $4.50 per share declared
in  December  of  2005.  The  cash  dividend will be paid on January 2, 2007, to
stockholders  of  record  on  December  15, 2006.  Total cash dividends declared
during  the  past 12 months were $6,965,738, or $8.55 per share of common stock,
an  increase of 9.6% over dividends per share declared in 2005. This is the 72nd
consecutive  year that the Company has declared cash dividend payments to common
shareholders.

"Farmers  &  Merchants  Bank's  strong  third  quarter  financial  performance
represented  the  35th  consecutive  quarter  that  net income exceeded the same
quarter  of  the prior year. Management and the Board of Directors are extremely
pleased  with  year-to-date  results  and unanimously approved the cash dividend
with  an  increase  over the prior year. This is the ninth consecutive year that
the  year-end  cash  dividend  has  been  increased" said Kent A. Steinwert, the
Bank's  President  and  Chief  Executive  Officer.

In  October,  the Company reported record third quarter net income of $5,333,000
or  $6.54  per  share of common stock which represents a 12.3% increase over the
same  period  in  2005. In addition, loans outstanding grew 9.6%, total deposits
increased 6.5%, and total assets were $1.42 billion up 9.4% over September 2005.
Return on Average Assets for the quarter was 1.54%. Return on Average Equity was
16.81%  for  the  quarter,  an  improvement  of  108 basis points over the third
quarter  of  the  prior  year.

Farmers & Merchants Bancorp is the parent of Farmers & Merchants Bank of Central
California,  also  known  as F&M Bank. Founded in 1916, and celebrating its 90th
anniversary,  F&M  Bank  is  a  full  service community bank that proudly serves
California's Great Central Valley through 21 branch offices conveniently located
from  Sacramento  to  Turlock.