Minding Ag's Business
Marcia Zarley Taylor DTN Executive Editor

Tuesday 11/06/12

Do Lenders Own Your Farm?
Fewer grain farms are likely to be held hostage by their debt loads should today's Golden Era end abruptly. Unlike the 1980s, America's grain producers have bolstered an important equity ratio since 2007 that will help them withstand a return to thinner profits or higher interest rates, a recent study by AgriSolutions found[Read Full Blog Post]
Posted at 6:47AM CST 11/06/12 by Marcia Zarley Taylor | Post a Comment
Comments (2)
How much of this was actual earned equity and not "paper" equity? Can you find out?
Posted by Matthew Schreurs at 9:29AM CST 11/06/12
Matthew, good question. It turns our farmers are earning wealth the old fashioned way--more through real profits than through inflating assets like land and equipment. AgriSolutions studied these 100 operators to analyze earned net worth since 2007. In 2011 alone, the farms generated $19.8 million in asset appreciation (paper profit) and $33.2 million in real earnings. We covered this in more detail in a blog "Are You Better Off Than Four Years Ago" if you want to scroll back to recent blog posts.
Posted by Marcia Taylor at 6:11PM CST 11/07/12
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