Using the data in Tables 7.13 and 7.14, does this farm qualify for debt (i.e., is the farm profitable, liquid, and solvent)?

Table 7.13

Table 7.14

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Item 2006 2007 2008 2009 2010 2011 2012 Gross cash income 171,629 175,798 173,228 176,568 170,313 157,930 178,858 Livestock income 29,842 32,940 34,992 29,167 27,125 26,969 35,055 Crop sales 118,775 115,367 118,821 120,567 120,299 104,439 116,904 Government payments 6,417 7,350 6,180 6,872 6,873 6,434 6,914 Other farm-related income 16,596 20,141 13,236 19,961 16,016 20,088 19,985 Total cash expenses 150,529 149,078 153,129 149,737 149,100 146,000 145,379 Variable expenses 74,051 77,016 77,289 78,770 74,374 73,362 74,025 Livestock purchases 1,317 1,298 945 1,349 1,222 1,417 1,247 Feed 9,039 8,450 10,204 9,764 10,064 9,032 9,462 Other livestock-related 934 968 1,048 1,182 1,103 953 912 Seed and plants 14,581 15,210 13,920 14,021 14,522 12,575 12,506 Fertilizer and chemicals 24,198 27,327 27,145 28,803 24,112 25,408 26,603 Utilities 1,766 1,721 1,747 1,808 1,910 1,897 1,761 Labor 6,375 5,709 6,276 5,780 5,336 5,572 5,958 Fuels and oils 6,537 6,590 6,586 6,419 6,484 6,581 6,563 Repairs and maintenance 7,845 8,310 7,992 8,222 8,183 8,492 7,583 Machine hire and custom work 1,457 1,432 1,426 1,421 1,440 1,435 1,428 Other variable expenses 63,857 59,835 62,797 58,340 62,137 59,687 59,037 Fixed expenses 30,729 30,053 32,369 27,946 28,058 30,532 31,288 Real estate and property taxes 3,562 3,728 3,542 3,279 3,512 3,471 3,497 Interest 5,711 5,753 6,032 6,035 5,774 5,656 5,773 Insurance premiums 3,599 3,774 3,710 3,778 3,738 3,862 4,037 Rent and lease payments 20,257 16,526 17,145 17,301 21,056 16,165 14,442 Net cash farm income 21,100 26,720 20,099 26,831 21,213 11,931 33,479 Depreciation Net farm income 12,620 12,227 13,043 12,627 12,588 12,951 12,318 8,480 14,493 7,056 14,204 8,625 -1,020 21,161