Part 5/16:
Farming's capital-intensive nature is underscored by the staggering investment in machinery and land. Modern tractors can cost upwards of $600,000, with older equipment still valued in the hundreds of thousands. Farmers frequently rely on local and national banks, such as Coe Bank, to finance operations. However, with crop prices down and input costs soaring, farmers' balance sheets are under stress. Farmland values, a crucial indicator of creditworthiness, have lagged but remain high, masking underlying cash flow struggles that could surface in the coming months.