WASHINGTON, D.C. (RFD-TV) — U.S. farm debt has topped $605 billion, but producers may owe more than government estimates suggest.
The U.S. Department of Agriculture (USDA) estimates total farm debt has more than doubled since 2000. However, Reuters reports traditional government surveys may not fully account for financing farmers obtain through equipment dealers, agricultural suppliers, cooperatives and other nontraditional lenders.
Researchers estimate about half of U.S. commercial farms now use some form of vendor financing.
With production costs high and profit margins tight, economists warn that unreported debt could obscure financial risks across the agricultural sector. USDA researchers are exploring ways to improve debt reporting and better identify potential financial trouble in farm country.
