The rapid increase in debt held by Americans is a common theme in recent economic discussions. While the mainstream media largely ignores the massive debt overload of both the government, corporations, and individuals, many others can read between the lines. Once the defaults start, they will cause an exponential ripple effect that could take down the entire economy, and our food supply.
Not only is farming a demanding job (physically and attempting to comply with increasing government regulations while staying afloat) but it's financially taxing. And farmers are covering their losses by using debt: borrowed money, that many won't be able to ever repay. According to Reuters, this debt is disastrous because it will eventually affect our food supply. The amount of debt held by America's farmers has risen rapidly to 1980s-levels to $409 billion from $385 billion last year. Loan demand is remaining "historically high," U.S. Agriculture Secretary Sonny Perdue said on Wednesday.
"Farm debt has been rising more rapidly over the last five years, increasing by 30 percent since 2013 – up from $315 billion to $409 billion, according to USDA data, and up from $385 billion in just the last year – to levels seen in the 1980s," Perdue said in his testimony to the House Agriculture Committee.