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Short-Term Asset And Debt Choice And U.S. Corn Farm Liquidity, Sarah Stutzman, Todd Hubbs
Short-Term Asset And Debt Choice And U.S. Corn Farm Liquidity, Sarah Stutzman, Todd Hubbs
Journal of Applied Farm Economics
The liquidity positions of U.S. corn farms over the period 2002–2013 is examined using Agricultural Resource Management Survey (ARMS) data and calculating the average annual working capital to gross revenue (WC/GR) ratio for farms within the 25th percentile, median, and 75th percentile. The relationship between liquidity and land ownership, farm size, and the composition and level of short-term farm asset and debts by category are compared across farms within the 25th, 25th–75th, and 75th WC/GR ratio percentile. We find that, on average, farms in the 75th WC/GR ratio percentile owned a greater portion of their operated acres and maintained both …