The extent to which assets can be quickly converted to cash without accepting a discount in their value. An asset is perfectly liquid if its sale generates cash equal to, or greater than, the reduction in the value of a farm due to the sale (i.e., the farm’s equity is not affected by the sale). Illiquid assets, in contrast, cannot be quickly sold without a producer accepting a discount, reducing the value of the farm by more than the expected sale price.
LIQUIDITY
