Are Indebted Family Farms at Higher Risk of Financial Stress?

Four separate measures of farm financial stress were constructed using financial ratios and Farm Financial Standards Council benchmark levels. The percentage of farms meeting each measure was estimated using Agricultural Management Survey data for the years 2013–2021 and compared across farms categorized by level and type of farm debt for full-time family farms, survey year, commodity specialization, and farm size. Results indicate that, on average, indebted full-time family farms (7.4%), particularly those with an FSA guaranteed farm loan (9.2%), were at higher risk of financial stress compared to full-time family farms without farm debt, part-time family farms, and nonfamily farms.