Farm Debt and Working Capital Continue to Deteriorate

Last week we reviewed the USDA’s latest farm income projections and noted sector-wide incomes are expected to increase again in 2020. Furthermore, current projections reflect an upward trend in farm income since 2016, with levels above the long-run, inflation-adjusted average. While all this is positive, farm income is only a single measure of the farm economy. The USDA’s projections also include a look at sector-wide financial conditions. This week’s post considers the continued deterioration in farm debt and working capital. (more…)