Journal or Book Title
Journal of ASFMRA
First Page or Article ID Number
The goal of the present study is to describe the evolution of financial liquidity in Iowa farms for 2014–2017, using a unique panel of 220 mid-scale commercial farms. Farms with vulnerable liquidity ratings increased from 33.2 percent in December 2014 to 45.0 percent in December 2017. On average, farms lost $244 of working capital per acre over that period, but farms with vulnerable liquidity ratings in December 2017 lost almost 60 percent more than that, or $388. Average farm size, machinery investment per acre, farm net worth per acre, debt-to-asset ratio, and age of operator were not significantly different across liquidity-rating categories.
American Society of Farm Managers & Rural Appraisers
Plastina, Alejandro, "Declining Liquidity in Iowa Farms: 2014–2017" (2019). Economics Publications. 663.