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Mixed News on Farm Bankruptcies Amid Pandemic

Farm bankruptcies increased 8% over a 12-month period, with 580 filings from June 2019 to June 2020. A six-month comparison, however, shows the number of new Chapter 12 filings slowing. Several contributing factors are likely at play as farmers struggle to stay afloat during the COVID-19 pandemic.

The Midwest, Northwest and Southeast were hardest hit, representing 80% of the filings across the U.S. Wisconsin led the nation with 69 filings, followed by 38 in Nebraska. Georgia and Minnesota each had 36 filings.

A closer examination of the numbers shows that while year-over-year filings increased for the month of June, filings slowed during the first six months of 2020 compared to the first half of 2019. The latest AFBF Market Intel, written jointly with the Association of Chapter 12 Trustees, shows from January to June 2020, there were 284 new Chapter 12 bankruptcy cases, 10 fewer than the same time in 2019. The reduction in filings coincides with aid distributed in the CARES Act that compensates farmers and ranchers for losses incurred from January through mid-April of this year. According to the Association of Chapter 12 Trustees, approximately 60% of farm bankruptcies are successfully completed – the highest successful percentage of all the reorganization chapters.

“Every farm bankruptcy potentially represents the end of a family’s dream,” said American Farm Bureau Federation President Zippy Duvall. “The fact that we saw bankruptcy filings slow in the first six months of 2020 shows how important the economic stimulus alongside the food and agricultural aid from the CARES Act have been in keeping farms above water, but the economic impact of the pandemic is far from over. It’s imperative that Congress addresses the challenges facing farmers and ranchers in current coronavirus relief legislation.”

As of August 3, $6.8 billion in CFAP payments have been delivered to farmers and ranchers. Many farmers, particularly those who are not regularly eligible for aid, have not applied for assistance or may not know the assistance is available. Farmers can learn more about coronavirus assistance at www.farmers.gov/cfap.

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Why Seed Analysts are Thriving Under Seeds Canada

Video: Why Seed Analysts are Thriving Under Seeds Canada

Last month in Edmonton, Alta., industry leaders and stakeholders gathered to discuss the evolving landscape of the seed industry at Seeds Canada’s annual conference. Among them was Sarah Foster, president of 2020 Seed Labs and the new vice-president of Seeds Canada.

Foster, who has been on the board of Seeds Canada for over a year, has witnessed firsthand the challenges and opportunities that come with the formation of the organization. Seeds Canada was established just over three years ago through the merger of multiple seed industry groups, including the Commercial Seed Analysts Association of Canada (CSAAC). Since then, the organization has been working to define its priorities and solidify its role in the industry.

“The challenge has been allowing the dust to settle after the merger,” Foster explained. “We’ve been focused on identifying what our priorities should be and ensuring that our members, especially the seed analysts, are getting what they need to continue their professional work.”

One of the recent highlights was a pre-conference event where the three major seed labs in Alberta — 20/20 Seed Labs, SGS Canada and Seed Check — opened their doors to members. The event saw a record number of seed analysts and business professionals in attendance. Foster emphasized the importance of this transparency, stating, “It’s crucial for people to see what goes on behind the scenes. We’re an open book now, and that openness helps build trust and understanding within the industry.”

The event also featured an environmental scan and a series of discussions that fostered strong communication among attendees. According to Foster, the dialogue was both encouraging and inspiring.

“A lot of people were really inspired by the fact that Seeds Canada is moving ahead with its agenda. The seed analysts, who have always worked diligently in the background, are now being recognized more prominently,” she said.

Before the merger, seed analysts were represented by CSAAC. Now, as part of Seeds Canada, they are finding their place within the larger organization. Foster believes that the integration has been successful, noting, “I think we’re thriving. You only need to look south of the border, where similar consolidations are happening.”

As Seeds Canada continues to evolve, Foster remains optimistic about the future. “I want to be totally transparent with anyone who is a seed analyst — I’ve got your back. We’re moving in a positive direction, and we’ll do everything we can to meet the needs of our members,” she said.