Farm Debt Likely to Reach All-Time High in 2017

Low commodity prices have made things tough by bringing down land values, tightening balance sheets, and increasing the stress level of America’s producers.  Unfortunately, that means farmers are continuing to take on more debt.  The amount of outstanding farm debt is likely to reach an all-time high this year.

Brent Gloy of Agricultural Economic Insights says if the debt level climbs another 5% from current levels, it will reach an all-time high.  MILKonline.com says unlike the 1980s farm crisis, farm debt to asset ratios are still very low today in comparison.

A Farmer Mac research expert says the amount of leverage on farms over the past several years remains low.

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