In these tough economic times when consumers and businesses are spending less, farmers should think carefully about how much money they want to borrow and how they would use it in their businesses, a Purdue University agricultural economist says.

When pursuing business opportunities, debt can be an important tool for business growth, Brent Gloy says.

"Opportunities may come up, and you may need to borrow money to go after them," he says. "Borrowing in moderation and using the funds for the right things is very important."

Some of those opportunities include investments that let farmers expand their operations, save on costs or improve efficiency, but they also should carefully consider incurring debt because unnecessary expenses can threaten financial security, Gloy says.

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