{"title":"Repayment Capacity Sensitivity Analysis Using Purdue Farm Financial Analysis Spreadsheet","authors":"Freddie L. Barnard, E. Yeager, Alan Miller","doi":"10.22004/AG.ECON.161502","DOIUrl":null,"url":null,"abstract":"Many agricultural producers purchased capital items the past few years and some used borrowed funds to finance the purchase. The principal payments on those term loans are paid from net farm income. This paper discusses the sensitivity of farm loan repayment capacity to changes in the gross revenue and operating expenses that determine net farm income. Sensitivity analysis is conducted using the Purdue Farm Financial Analysis Spreadsheet. The sensitivity analysis and application of the updated program are illustrated using a case study","PeriodicalId":178727,"journal":{"name":"Journal of American Society of Farm Managers and Rural Appraisers","volume":"32 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2013-06-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of American Society of Farm Managers and Rural Appraisers","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.22004/AG.ECON.161502","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 1
Abstract
Many agricultural producers purchased capital items the past few years and some used borrowed funds to finance the purchase. The principal payments on those term loans are paid from net farm income. This paper discusses the sensitivity of farm loan repayment capacity to changes in the gross revenue and operating expenses that determine net farm income. Sensitivity analysis is conducted using the Purdue Farm Financial Analysis Spreadsheet. The sensitivity analysis and application of the updated program are illustrated using a case study