Report: Farm Bankruptcies Have Increased 23% Over The Past Year
The coronavirus pandemic is likely to increase the already growing number of farm bankruptcies in the United States, according to Farm Bureau.
- American Farm Bureau Federation Economist, John Newton, notes that “over the last 12 months ending March 2020,” Chapter 12 bankruptcies in the U.S. have gone up 23 percent, totaling 627 filings.
- Newton says that although it is “well below the levels we saw in the 80’s, it’s still the third-highest that we’ve seen in the last 20 years, so it’s a concerning trend.”
Now, with the coronavirus pandemic, farmers will likely suffer more and need more assistance.
- Newton acknowledges the utility of the Coronavirus Food Assistance Package that provides “$16 billion in support to agriculture,” but also says that it is “just an initial down payment.”
- Farmers will face struggles with “high unemployment, loss of off-farm income, and with farm debt at a record $425 billion, that could increase farm loan delinquencies.”
Newton hopes that Senators will work on more assistance packages for agriculture to help “bridge the gap and avoid more farm bankruptcies in the future.”
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