Farm Bureau: Farmland values conceal problems 

An American Farm Bureau Federation Market Intel analysis published last week said that farmland values continue to rise, but farmers still have problems accessing working capital. 

“The strength in farmland values has helped to keep equity measurements like the debt-to-asset ratio relatively low despite record farm debt and a weak farm economy,” wrote John Newton,  Farm Bureau vice president of public policy and economic analysis, wrote.

“At the same time, strong land values can improve a farmer’s access to credit by providing collateral for borrowing and helping bridge short-term cash flow or liquidity challenges.

“However, because land itself is not a liquid asset, higher land values do not necessarily translate into immediate or expanded access to working capital,” Newton said.

“Policy solutions such as year-round E15, the farm bill and economic aid are within reach in the Senate, offering opportunities to improve farm income, expand market access and support rural economies,” Newton added.