As farm income has fallen over the past few years, farm equity has also fallen, but it is only down about 5 percent from the peak in 2014, stabilized by high land values…with low commodity prices, farmers have increasingly tapped into their real estate equity to provide operating funds. Today, total debt is approaching record levels in real terms, and real estate debt has reached a record high in 2018.Farm real estate debt is expected to reach $263.7 billion in 2019, a 5.1-percent annual increase in nominal terms and a 3.3-percent rise in inflation-adjusted dollars. Farm real estate debt accounts for 61.8 percent of total farm debt. Farm nonreal estate debt is expected to increase 1.9 percent in nominal terms to $163.0 billion in 2019.
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