The sticks of SD | zenfarm - 9/5/2015 07:44
While using the Kansas farm management debt to asset figures for their comparsion to the 1979 figure is fine but it is just a snapshot in time and doesn't tell the whole story. Based off the latest figures debt to asset ratios have fallen since 2002 in the Kansas farm management data base.
When we entered the decade of the 80's debt to asset ratios were not out of line either. When your assets: machinery, land, personal assets all crater in value, debt to asset ratios then look really, really bad. How can a ratio look bad with never seen before record highs in farmland? Take 50% off the price of land and where do these ratios lie. 50% drop in land and machinery values is nothing, it can happen very quickly. It has before, and it will again. |