Agriculture operating credit lines
Deere6
Posted 12/14/2025 21:14 (#11470460 - in reply to #11470280)
Subject: RE: earned net worth....


SE IL		I think it’s less complicated than it seems: equity doesn’t pay bills and can be a poor indication of profitability. To me as a farmer it mostly refers to land, not as much depreciable assets like equipment. Thread above is good example; land prices in some areas have doubled in last 5 years. 1m in land bought in 2020 and now your net worth on a balance sheet in 2025 is 500k higher; BUT your land is valued at 2m (1m more). So you actually lost 500k farming but the increase (unearned income) in land distorts that.
Top of the page Bottom of the page