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FARM FUTURES SURVEY SHOWS MORE FARMERS GETTING WORRIED ABOUT THEIR FINANCES
Apr. 1, 2016
Penton Agriculture reports:
The latest Farm Futures survey finds that low prices have farmers worried about their financial situation as spring planting looms.
But the number of operations considered financially vulnerable remains relatively modest.
The percentage of growers saying they worry about the ability to pay back debts rose to 48% -- the highest level since 2012 and a 4% increase over the past year.
Nearly 12% of those surveyed lost money in 2015.
Debt levels are rising with lower incomes. The percentage of growers reporting a debt-to-asset ratio of about 40%, which is considered a red flag for lenders, rose 1% to 13.1%.
Farms are considered financially vulnerable if they have marginal income and solvency -- when they both lose money and have high debt. The percentage of farms in that category rose from 1.8% a year ago to 3.7% in the latest survey, conducted from March 7 to March 23.
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