Trends in Farm Balance Sheets Over Time
Trends in the financial position of Illinois farms are presented in this article.
University of Illinois Agricultural Economist Gary Schnitkey explored Illinois Farm Business Farm Management balance sheets to see how they have changed over time. He discusses those changes with University of Illinois Extension Farm Broadcaster Todd Gleason.
Overall, farms gained financial strength from 2006 to 2012. Since 2012, working capital has declined. The net worth and debt-to-asset position of most farms remain strong, but per acre net worth has decreased and the debt-to-asset ratios have increased in recent years. Those are worrisome trends. Future financial performance depends on returns. Likely financial performance given differing commodity prices are presented at the end of this article.