NEWS
DTN Ag Business Benchmark
Marcia Zarley Taylor DTN Executive Editor
Thu Feb 21, 2013 07:53 PM CST

HADDONFIELD, N.J. (DTN) -- Rising profit margins, appreciating grain inventories and ultra-low interest rates have nearly doubled the borrowing capacity of many farms since 2007. But financial analysts caution it may be wise to resist the temptation to borrow to your credit limit today, just in case the ag economy falters tomorrow.

An in-depth study of 30 commercial farms from across the Grain Belt shows the average operation's credit capacity ballooned from about $2.5 million in 2007, to $4.6 million by 2011. Total liabilities also grew, but much more slowly, from $1.7 million on average in 2007 to $2.8 million ...

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