NEWS
Minding Ag's Business
Marcia Zarley Taylor DTN Executive Editor
Tue Nov 6, 2012 08:39 AM CST

HADDONFIELD, N.J. (DTN) -- 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.

After the 1980s debt crisis, financial advisers encouraged farm operators to keep their equity-to-asset ratio above 0.5 at a minimum, AgriSolutions consultant Sam Bachman says, with 0.66 the recommended level.

Bachman divided 100 grain farms in the AgriSolutions database into four quartiles, ranked ...

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