According to the USDA, Farm business asset, debt, and equity values are expected to continue rising through the end of 2008. Growth in farm asset and debt values reflect farm investor and lender expectations about the long-term profitability of farm sector investments.
The value of U.S. farm business assets is forecast to increase by about 13.1 percent in 2008 (see table). The value of farm business real estate assets, which comprise about 85 percent of farm sector assets, is expected to rise by 14.9 percent, following a 13.7-percent gain in 2007. (See glossary for definitions of terms.)
The value of year-end 2008 crop inventories is expected to rise slightly (up 0.7 percent) from 2007 while the value of livestock and poultry inventories is expected to fall slightly (down 0.1 percent). The value of machinery and motor vehicles is expected to rise by about 2.3 percent in 2008, based on higher expected sales. The value of purchased inputs held in onfarm inventory is expected to increase by about 6.6 percent in 2008 and the value of financial assets is expected to rise about 5.1 percent.
