Debt Load Worries Farm Wife

Dear Michael: We have seen our farm operation grow tremendously in the past few years. Along with that growth, our incomes have risen but our expenses have also risen considerably. The net incomes are still higher than they’ve ever been before, but we always worry something could change. My husband has continued to buy machinery and land with this income, but sometimes I worry about the debt load we are now carrying. Dear Michael: We have seen our farm operation grow tremendously in the past few years. Along with that growth, our incomes have risen but our expenses have also risen considerably. The net incomes are still higher than they’ve ever been before, but we always worry something could change. My husband has continued to buy machinery and land with this income, but sometimes I worry about the debt load we are now carrying. We now have more debts than when we were in our thirties and forties and we’re closing in on sixty. My husband said it’s not a problem because our debt ratio is much better than it was back when we were younger. What do you think? – Worried Wife. Dear Worried Wife: I agree with your husband with his assessment of the debt to asset ratio. It seems, if you’re not getting larger these days, you’re going backwards. However, all of this sudden growth has...

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