ABSTRACT
This chapter considers trends in sector income, wealth, debt and cash flow since 1960, as well as various key financial ratios. Net cash income, measures, as the name implies, the net cash income earned in a given year, and more accurately reflects the cash flow position of the sector during the year. Trends in the balance sheet of the farming sector are dominated by real estate assets. Trends in farm sector wealth are important as indicators of financial performance if it is assumed that farmers have as one of their business objectives the accumulation of wealth. Rates of Return in the Farm Sector Rates of return in farming are derived from two sources, the income generated by farm assets and real capital gains associated with changes in the constant dollar value of farm assets and debt. The debt-to-asset ratio has also been used as a measure of the debt burden of the sector.
