Farm debt in the United States is on the rise. USDA projections for 2025 show that farm sector debt is expected to increase 5 percent to reach $591.8 billion. Locally, Chris Gavin, CEO of 1870s Holding Company, shares that liquidity has taken a big hit.
“It shows up in the banks, not only with the debt levels, but we’re seeing it in the liquidity side, because there’s a lot of farmers that maybe don’t borrow as much money, that have liquidity, and its money sitting in their money market account, in the checking account. So, we’re seeing those levels have come down dramatically the last couple of years, and the debts are going up.”
Gavin adds that locally, balance sheets are “pretty healthy” in terms of debt equity levels.
