With agricultural markets adrift while the U.S. Farm economy fraying in the last few years, a groundswell of farmers at risk of USDA’s Farm Service Agency, the last-resort lender for running loans and guarantees, could be anticipated.
Rather, the sheer number of FSA direct working loans slipped 16 per cent from 2016 to 2018 while operating loan guarantees plunged 27 %.
The decrease “isn’t just what we anticipated, ” said William Cobb, acting deputy administrator of FSA Farm Loan tools.
This year, and their total debt has swollen to $410 billion, up nearly 40 percent since 2011, USDA said in its recent 2018 farm sector economic outlook after all, American farmers’ inflation-adjusted net farm income is projected to fall 14 percent.
In reality, in commenting on that report, USDA Chief Economist Rob Johansson declared “10 per cent of crop farms and 6.2 % of livestock farms are forecast become extremely or really extremely leveraged. Read more