[Agriculture Fact Book 98]

3.    The U.S. Farm Sector

The Balance Sheet

Farm business asset values are estimated to have totaled $1,034.9 billion on December 31, 1996, an increase of 5 percent over the preceding year. Farm business debt rose 3 percent during 1996, totaling $156.2 billion at year's end. As a result, farm business equity is estimated to have risen 3 percent. Average equity per farm on December 31, 1996, is estimated to have been $426,000.

The resulting debt-to-asset ratio for 1996 (expressed as a percentage) decreased from 15.3 to 15.1. This ratio is substantially below the peak of 24 percent reached in 1985.

Real estate assets accounted for 78 percent of the value of farm business assets at the end of 1996. Real estate assets were expected to have increased 6 percent during the year. The average real estate value per farm was $390,000 on December 31, 1996.

Non-real-estate assets are estimated to have increased 2 percent during 1996. Decreases in value were for machinery and motor vehicles, purchased inputs, and financial assets. The value of crops stored, and of livestock and poultry were estimated to have increased in 1996.

figure 3-1 figure 3-2

Farm business real estate debt increased slightly in 1996, standing at $81.9 billion at the end of the year. Non-real-estate debt rose 4 percent to $74.2 billion. On December 31, 1996, commercial banks held 40 percent of farm business debt, and the Farm Credit System held 26 percent.

table 3-2

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