The Balance Sheet of the Farming Sector, 1971

Farm proprietors' assets totaled $318.9 billion on January 1, 1971, while farm debt outstanding totaled $61.1 billion, leaving equities of $257.8 billion. The ratio of farm debt to value of assets was 19.2 percent, up from 18.8 percent a year earlier. Advances in the values of farm real estate made up over half of 1970's $9.3 billion gain in farm asset value; higher value of machinery and motor vehicles largely accounted for remaining growth. Farm non-real estate debt grew $2.7 billion during 1970, compared with $1.1 billion for farm real estate debt. Farmers were reluctant to take long-term real estate loans at the prevailing high interest rates. Realized net farm income dropped to $15.6 billion-down 6.5 percent from 1969