Financial Stress on Crop Farms: Who Is Most at Risk in the 2024–26 Downturn? - farmdoc daily
Michael Langemeier, Michael Boehlje, and Joana Colussi - Midwest crop producers have experienced a significant downturn in prices since late 2023, resulting in a drop in net returns in 2024. Farms with low profitability and high solvency levels are typically financially stressed. This article used the operating profit margin ratio and the debt-to-asset ratio to create a measure of financial stress. Specifically, farms with a negative operating profit margin ratio and a debt-to-asset ratio abo...| farmdoc daily
