Farm real estate debt to reach record high

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Real estate debt in the farm sector is expected to reach a new high in 2023.

New data from USDA’s Economic Research Service shows debt tied to real estate could hit $375.9 billion this year. Farm sector real estate debt has been increasing continuously since 2009 and when adjusted for inflation, it is expected to be 87.5 percent higher in 2023 compared with 2009.

Real estate debt now far outpaces debt that is not secured by a mortgage. Historically, the two have trended similarly, but they have diverged in recent years. Non-real estate debt showed an 11.9-percent year-to-year increase in 2014 in inflation-adjusted dollars. It declined after 2017.

Meanwhile, there has been a continuous increase in real estate debt since 2009. In 2023, real estate debt is expected to be 33 percent higher than the ten-year average, while non-real estate debt is expected to be 10 percent lower.

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