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financial stress

Rising Farm Debt and Financial Stress: Evidence from the Ag Economy Barometer

New Ag Economy Barometer data suggest rising operating loans—especially those tied to carryover debt—may signal increasing financial stress and thinning working capital cushions on farms.

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Financial Stress, Labor Decisions, and Farm Resilience: Tools to Evaluate Your Operation

Adding a family member or employee to a farm is a long-term financial decision. These slides and self-assessment tools help evaluate financial feasibility, strategic risk, and business resilience before expanding labor.

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The Right Way to Cut Costs

Tight margins often trigger cost-cutting decisions, but not all cuts improve profitability. This article explains how marginal analysis can help producers evaluate fertilizer, seed, and seeding rate decisions to protect returns when prices are low.

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Projected Net Income per Acre for West Central Indiana Case Farm

For a state such as Indiana, which is heavily reliant on corn and soybean receipts, the latest USDA-ERS net farm income forecast seems counter-intuitive. After two strong net farm income years in 2021 and 2022, net farm income has been below average for crop farms. Current projections for 2025 and 2026 suggest that net farm income will remain below average through at least 2026.

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Financial Stress on Crop Farms: Who Is Most at Risk in the 2024–26 Downturn?

Midwest crop producers have experienced a significant downturn in corn, soybean, and wheat prices since late 2023, resulting in a drop in net returns in 2024. Moreover, current expectations are that prices will continue to remain at or below the cost of production for at least a couple more years. Consequently, a key question being asked is as follows: “Who is the most vulnerable financially during this downturn”?

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Decomposition of Statement of Cash Flows

Cash flow trends from 2007 to 2024 show how crop farms rely on operating income and borrowed funds to drive growth through asset purchases. As income levels shift, so do investment decisions—offering key insights for managing through expected challenges in 2025.

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Decomposition of Changes in Net Worth

There are three major changes that contribute to an increase or decrease in net worth: change in retained earnings, change in contributed capital, and change in market valuation. Tracking changes in net worth over time is one of the most important tasks of those in charge of analyzing a farm’s financial position and performance.

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Contingency Planning with Cash Flow Shortages

Contingency plans related to how to respond to changes in projected cash flows are important. Given the expected drop in crop prices this fall and wide variability in expected prices, it would be prudent for a farm to examine the sensitivity of their cash flow and repayment capacity to changes in crop prices. Using a case farm in southwest Indiana, Michael illustrates how contingency plans could be used.

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The 2024-25 Financial Downturn: Who is the Most Vulnerable

Midwest crop producers have experienced a significant downturn in corn, soybean, and wheat prices since the beginning of the year and farm incomes are expected to be much lower in 2024 than they have been the last three to four years. Moreover, current expectations are that prices will continue to remain at or below the cost of production for at least a couple more years. Consequently, a key question being asked is as follows: “who is the most vulnerable financially during this downturn”?

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Contingency Planning with Cash Flow Shortages

Contingency plans related to how to respond to changes in projected cash flows are also important. Given the expected drop in crop prices this fall, it would be prudent for a farm to examine the sensitivity of their cash flow and repayment capacity to changes in crop prices.

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