Farm Bankruptcies Mark Five Years of Consecutive Growth

WASHINGTON, DC – Year-to-year farm bankruptcies increased 23 percent, according to the American Farm Bureau Federation, showing a total of 627 filings during the 12-month period ending March 2020. This now marks five consecutive years of Chapter 12 bankruptcy increases, including an accelerated rate since January. Wisconsin was the hardest hit with 78 filings in the past 12 months, followed by Nebraska (41), and Iowa (37). More than half of the filings were in the 13-state Midwest region, followed by the Southeast with 19 percent. Farm Bureau Chief Economist Dr. John Newton suggests the increase in bankruptcies is not related to the coronavirus pandemic. However, he explains, with an expected decline in off-farm income due to COVID-19, this could affect small-to-medium-sized farms’ ability to service a record of $425 billion in debt.