Year-to-year farm bankruptcies increased 23 percent, according to recently released data from U.S. Courts. An American Farm Bureau Federation Market Intel report shows a total of 627 filings during the 12-month period ending March 2020, marking five consecutive years of Chapter 12 bankruptcy increases, including an accelerated rate since January.
Wisconsin was the hardest hit with 78 filings in the 12-month period, followed by Nebraska with 41 Chapter 12 filings and Iowa at 37. More than 50 percent of the Chapter 12 filings were in the 13-state Midwest region, followed by 19 percent in the Southeast.
“Each bankruptcy represents a farm in America struggling to survive or going under, which is both heartbreaking and alarming,” said American Farm Bureau President Zippy Duvall. “Even more concerning, the difficulty staying afloat is made worse by the pandemic and related shutdowns as farmers are left with fewer markets for their products and lower prices for the products they do sell.”
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