Farm Economy: Debt to Income Signals Caution

Over the last few years we have documented a number of important trends in the financial condition of the U.S. farm sector.  These have included a decline in liquidity, rapidly growing amounts of real estate debt, and deteriorating repayment capacity.  While falling interest rates have helped to mitigate the impact of increased debt use, farm income has often been soft.  This week we look at the relationship between farm income and debt levels. (more…)