Ag Secretary Tom Vilsack says 10 percent of US farming operations are on the edge – extremely leveraged or highly leveraged.
In testimony before the Senate Agriculture committee Wednesday – he said that means 90 percent are outside those categories.
Vilsack said there is a record amount of credit extended to ag operators but in October there will be substantial ARC and PLC payments to farmers far above last year.
Vilsack said export markets are up slightly, which is a good thing, “And, obviously, this Congress and Senate will make determinations potentially on possible trade agreements that could substantially expand opportunity.”
And the debt to equity level is slightly higher than the record low.
“The debt to equity level today is 12.4 percent. In 1985, in the midst of the farm crisis that you and I are certainly aware of, it was 22 percent. So, the debt-to-equity radio still appears to be strong.”
Vilsack said an expected large crop, global economic weakness and a stronger US dollar continue to challenge farmers but the USDA will continue to promote trade.
Source: brownfieldagnews.com