Farm Bankruptcies Bucking Trend, Fall to Six-Year Low

WASHINGTON, DC – The American Farm Bureau Federation (AFBF) is encouraged following a recent release of nationwide Chapter 12 bankruptcy filings.

According to the data from the U.S. Courts, there were 24 percent fewer filings over the past year (June 2020 through June 2021) with the total number of 438 representing the lowest number since 2015.

Veronica Nigh is a Senior Economist with AFBF and explains that the ongoing impact of the severe drought in the West and Upper Plains is likely the culprit for an increase in those regions.

The Southwest recorded the largest year over year increase (14 percent) with three states driving the number higher: Colorado, New Mexico, and Oklahoma.

California also registered a 13 percent year over year increase.

Despite the regional increases, Wisconsin’s 48 filings continues to lead the nation, even though it was a reduction from 2020.

Nigh warns that one year doesn’t make, or break, a trend so it will be important to keep an eye on farmer finances for the next few years, especially in light that a number of producers had to dig deep into savings and equity to keep their head above water.
(SOURCE: All Ag News)