I think the highest ratio I have heard of anyone being comfortable with was 66% debt to asset ratio and that was many years ago. I think my current bank is uncomfortable with a ratio over 50% in this kind of farm economy when there is a good chance that your assets will go down in value. If you look at the fin bin information for 2014 it showed about 20% of the farms in that program had over a 60% debt to asset ratio and I would guess that the ratio has probably gotten worse in the last year. I don't think you could get a new loan with those ratios however.
Edited by zmracing 1/27/2016 07:25
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