Farm Bankruptcies Continue To Rise, Reaching Highest Level In Nearly A Decade
Chapter 12 farm bankruptcies continue to rise as President Donald Trump’s trade war with China and adverse growing conditions plague American farmers.
According to a review of court data by the American Farm Bureau Federation, farm bankruptcies are up 24 percent over last year, with 580 filings as of September 2019.
The Farm Bureau’s report noted that this is the highest level for chapter 12 filings since 2011.
Wisconsin saw the most bankruptcies over the last year, with 48 filings, and Alabama, Nebraska and Kansas came in next with 37 bankruptcy cases, the bureau said.
“Iowa, Kansas, Maryland, Minnesota, Nebraska, New Hampshire, South Dakota, Wisconsin and West Virginia all experienced Chapter 12 bankruptcy filings at or above 10-year highs,” according to the report.
Farms in the Midwest region experienced the most hardship, with 255 bankruptcy filings — or more than 40 percent of the nationwide total.
The report noted that the sustained rise in filings is a concern and that “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,” the report concluded.