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What is inflation and why has it happened?

It occurs worldwide! no matter where you live, the food prices increased! This is insane! If people stop using processesed food as ingredients but instead use chickens eggs, meat and veg grown from their own 'unlicensed' farms would the meal price remains or priced even cheaper? Still depends on the regulations, does your government mandates that every farm must be licenced so they can collect something called 'tithes' from the farmers? I don't know every country is different.
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As long as we have inflation, the national debt isn’t a problem as we are paying it back with cheaper future dollars.

Regarding your farm idea, that’s impossible with the current population. You’d need a massive reduction to free up the land that would be needed. So you would have liked Pol Pot.