Farm Debt Ratios

K-State farm management economist Gregg Ibendahl discusses his new analysis of debt trends on Kansas farms, based on over 45 years of Kansas Farm Management Association data. He compared debt-to-asset ratios over those years to the most recent ratio as an indicator of farm solvency, saying that while most farmers are in good shape right now, any major downturn in farm asset values could quickly become problematic for producers.