2019 Farm Bankruptcies: A 20% Increase Compounded by Record High Debt and Record Low Income

The 2019 year-end bankruptcy filing data is finally in, and not surprisingly, Chapter 12 filings increased significantly–almost 20%–from the previous year. Nationwide, there were 595 Chapter 12 filings in 2019, compared with 498 for calendar year 2018. The 2019 levels are the highest in eight years, with the last peak being 637 in 2011 (immediatelyContinue reading “2019 Farm Bankruptcies: A 20% Increase Compounded by Record High Debt and Record Low Income”

The Pea Protein Market Shift: Why Producer Bankruptcies May Play a Big Role

If you are purely data driven in how you view near-term agriculture market trends, peas don’t seem to have a bright future: production is up 40 percent from a year ago, but prices (of the heavily exported commodity) are the lowest in 20 years, due largely to heavy tariffs imposed by China (35%) and IndiaContinue reading “The Pea Protein Market Shift: Why Producer Bankruptcies May Play a Big Role”

Chapter 12 and the New Capital Gains Tax Rule: More Upside for FSA Lenders in 2020?

Notwithstanding recent good news on China ag commodity purchase commitments, market experts are forecasting continued oversupply and difficult conditions for farmers through the first half of 2020, with the pipeline of new Chapter 12 filings expected to continue unabated, especially for dairy and protein producers. But there’s at least a hypothetical light at the end of theContinue reading “Chapter 12 and the New Capital Gains Tax Rule: More Upside for FSA Lenders in 2020?”