{"id":44167,"date":"2019-03-03T19:23:29","date_gmt":"2019-03-04T00:23:29","guid":{"rendered":"https:\/\/olduvai.ca\/?p=44167"},"modified":"2019-03-03T19:23:32","modified_gmt":"2019-03-04T00:23:32","slug":"american-farm-debt-reaches-1980s-crisis-levels-agriculture-secretary","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=44167","title":{"rendered":"American Farm Debt Reaches 1980s Crisis Levels: Agriculture Secretary"},"content":{"rendered":"\n

American Farm Debt Reaches 1980s Crisis Levels: Agriculture Secretary<\/a><\/h3>\n\n\n\n

Debt among American farmers has increased to $409 billion, Agriculture Secretary Sonny Perdue warned Wednesday. That is up from $385 billion last year and is currently at levels not seen since the agricultural recession (farm crisis) of the 1980s, reported Reuters.<\/p>\n\n\n\n

\u201cFarm debt has been rising more rapidly over the last five years, increasing by 30% since 2013 \u2013 up from $315 billion to $409 billion, according to USDA data, and up from $385 billion in just the last year \u2013 to levels seen in the 1980s,\u201d Perdue said in his testimony to the House Agriculture Committee.<\/p><\/blockquote>\n\n\n\n

Purdue told lawmakers: \u201cRelatively firm land values have kept farmer debt-to-asset levels low by historical standards at 13.5%, and continued low-interest rates have kept the cost of borrowing relatively affordable.\u201d<\/p>\n\n\n\n

\u201cBut those average values mask areas of greater vulnerability,\u201d he added.<\/p><\/blockquote>\n\n\n\n

The agricultural sector has experienced tremendous headwinds in the last five years amid deflationary trends in commodity prices, storms damaging crops, and more recent – supply chain disruptions into China due to President Donald Trump\u2019s trade war.<\/p>\n\n\n\n

“As producers are not able to cover year to year expenses with operating loans, they are forced into transforming operating loans into term debt which erodes their creditworthiness,” said Luis Ribera, an agricultural economist at Texas A&M University.<\/p>

“On top of all that then we have the trade war which reduces the demand of US commodities given that tariffs make them more expensive and then depress the prices even more.”<\/p><\/blockquote>\n\n\n\n

US Department of Agriculture chief economist Robert Johansson said farm exports are expected to drop by as much as $1.9 billion this year, citing the deepening trade war.<\/p>\n\n\n\n

\"\"\/<\/a><\/figure>\n\n\n\n

 \u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

American Farm Debt Reaches 1980s Crisis Levels: Agriculture Secretary Debt among American farmers has increased to $409 billion, Agriculture Secretary Sonny Perdue warned Wednesday. That is up from $385 billion last year and is currently at levels not seen since the agricultural recession (farm crisis) of the 1980s, reported Reuters. \u201cFarm debt has been rising more rapidly over the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[195,24530],"class_list":["post-44167","post","type-post","status-publish","format-standard","hentry","category-economics","tag-debt","tag-sonny-perdue"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44167","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=44167"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44167\/revisions"}],"predecessor-version":[{"id":44168,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44167\/revisions\/44168"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=44167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=44167"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=44167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}