NEWS
Minding Ag's Business
Marcia Zarley Taylor DTN Executive Editor
Mon Oct 29, 2012 09:49 AM CDT



Record farm incomes since 2009 have helped four out of 10 grain farmers attain a near debt-free status on operating costs, a recent study by the financial consulting firm AgriSolutions found. But a significant percentage of growers--about one out of five--still shoulder so much short-term debt that lenders are likely to question their creditworthiness.

Lenders use the so-called current ratio to flag potential repayment problems. In agriculture, lenders prefer a ratio of current assets to current liabilities of about 1.25 to 1.65, said AgriSolutions analyst Sam Bachman. That's the measure of operating debt-- and perhaps this year's land payment--relative ...

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