Mixed results show some farms improved in 2019, while others saw a decline.
Despite a higher average income in 2019, Iowa’s mid- to large-size farms actually saw a considerable decrease in farm liquidity and working capital over the past year.
Data from the Iowa Farm Business Association, collected from 401 farms, shows net farm income in 2019 at an average of $77,946 per farm. But that number only tells part of the story, according to Alejandro Plastina, assistant professor and extension economist at Iowa State University.
“A higher average income in 2019 did not translate into an overall improvement in financial liquidity for Iowa farms,” Plastina said. “Not only was the share of farms with vulnerable liquidity larger in December 2019 compared to a year earlier, but their working capital needs were also higher.”