U.S. farm sector solvency ratios, 1970–2024F
Solvency is a measure of the ability of a farm or ranch operation to satisfy its debt obligations when due. Popular measures of solvency include the debt-to-asset ratio and debt-to-equity ratio. Lower values for these ratios are preferred. In 2024, these ratios are expected to go down slightly because debt is forecast to grow at a slower rate than assets. The debt-to-asset ratio is forecast to decrease from 12.93 percent in 2023 to 12.86 percent in 2024 and the debt-to-equity ratio is expected to decrease from 14.85 percent in 2023 to 14.75 percent in 2024.
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