The amount of debt held by America’s farmers has risen rapidly to 1980s’ levels at $409 billion from $385 billion in the previous year, with loan demand remaining “historically high,” U.S. Agriculture Secretary Sonny Perdue testified on Wednesday before the House Agriculture Committee at a hearing titled, “The State of the Rural Economy.”
Lawmakers explored a variety of issues in their discussion with Sec. Perdue, including the condition of the agricultural economy, trade and African swine fever.
Net farm income has fallen nearly 50 percent from its peak in 2013, as most commodity prices have fallen during the past five years while global stock levels have rebounded with several years of record production. The largest U.S. soybean crop ever was in 2017 and again in 2018. U.S. corn production was the second highest ever in 2017 and third highest ever in 2018. Other countries also have seen high production numbers. And in 2019, global production will continue to expand, trade challenges will persist, and these factors will continue to affect commodity prices.
Sec. Perdue added, “Our Chief Economist at USDA calculated that working capital has decreased by 70 percent since 2012. However, total cash receipts are forecast to be slightly higher in 2019 across crop and livestock commodities, and average net farm income is forecast to be higher in 2019 compared to 2018.”
More specifically, Sec. Perdue stated: “Looking forward, USDA projects 2019 net farm income at $77.6 billion, a $14 billion increase from the projections made last year.”
To read the full committee report, click here.
