Nov 04, · According to the report, which tracked bankruptcy filings over 12 months ending in September , the Midwest accounted for 40% of the nation's Chapter 12 farm bankruptcy Author: Casey Leins. Oct 30, · Chapter 12 farm bankruptcies continue to increase as farmers and ranchers struggle with a prolonged downturn in the farm economy that’s been made worse by unfair retaliatory tariffs on U.S. agriculture as well as two consecutive years of adverse planting, growing and harvesting conditions. U.S. farmers are filing for Chapter 12 bankruptcy at the highest rate in at least a decade as agriculturists feel pressure from trade wars and low commodity prices, The Wall Street Journal reported in February. The Seventh Circuit Court of Appeals processed twice as many bankruptcy files from farmers in than it did in
Figure 4 highlights Chapter 12 bankruptcy filings by region and the year-over-year change. While filings remain well below the historical highs experienced in the s, the trend is a concern.
The support provided to farmers in and is expected to alleviate some of the financial stress, however, not all farmers will benefit from trade assistance, farm bill programs, crop insurance or disaster aid. As a result, it could take some time for the financial relief to manifest in the farm bankruptcy trends.
Contact: John Newton, Ph. Chief Economist jnewton fb. Market Intel July 6, While an increase of 4. And longer-term employment projections from the Congressional Budget Office, touched upon later in the article, suggest it will take nearly a decade before getting back to the February peak. Market Intel July 2, Take Action Now! Market Intel October 30, Credit: Texas Farm Bureau. Share This Article. According to data released this week by the United States Courts, family farmers filed Chapter 12 bankruptcies in , up from filings a year earlier.
Farmers across the nation also have retired or sold their farms because of the financial strains, changing the face of Midwestern towns and concentrating the business in fewer hands. Covey, a bankruptcy attorney based in Peoria, Illinois. Chapter 12 is a part of the federal bankruptcy code that is designed for family farmers and fishermen to restructure their debts.
It was created during the s farm crisis as a simple court procedure to let family farmers keep operating while working out a plan to repay lenders. Even billions of dollars spent over the past two years in government agricultural assistance has not stemmed the bleeding. Nearly one-third of projected U. Department of Agriculture.