Debt/Asset Ratios of Ohio Farmers: An Examination of Associated Factors

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1984-12

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Ohio State University. Department of Agricultural, Environmental, and Development Economics

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This paper describes the incidence of alternative debt/asset ratios on Ohio farms and examines the relationships of associated factors. An analysis of survey data revealed: (1) diverse ratios on Ohio farms--42 percent of respondents reported zero debt, 71 percent reported a ratio less than 25 percent, and 13 percent reported ratios greater than 5O percent; (2) relationships between debt/asset ratio and operator age, farm size, and percent of land farmed which is owned were statistically significant; (3) major source of income (i.e., farm type) and non-farm income as a percent of family income were not significantly related to debt/asset ratio.

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