Incidence of Financial Stress on Illinois Grain Farms

Over time working capital has deteriorated and debt-to-asset ratios have increased on grain farms across the Midwest. Average levels of working capital and debt-to-asset ratios still suggest an overall strong financial position for grain-based agriculture. However, averages mask diversity in financial positions across farms. Ranges in debt-to-asset and working capital positions are presented in this article using data on grain farms enrolled in Illinois Farm Business Farm Management (FBFM). At the end of 2017, 12% of grain farms had debt-to-asset ratios exceeding 0.50, up from 7% at the end of 2013.