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”

What Happens to Market Facilitation Program Payments in Farm Bankruptcies?

The news in early November that a second round of $7.8 billion in 2019 Market Facilitation Program (MFP) payments would get underway—news that comes at a time when farm bankruptcy filings are on the rise—raises a potentially significant question for both agricultural lenders and struggling producers alike: what happens to MFP payments in bankruptcy? TheContinue reading “What Happens to Market Facilitation Program Payments in Farm Bankruptcies?”

Chapter 12’s New $10 Million Debt Limit: Will Farm Bankruptcy Filings Spike?

Following the enactment of the Family Farmer Relief Act of 2019 in August, there has been endless speculation as to whether the Act’s dramatic increase in the Chapter 12 maximum debt limit—from about $4.4 million to $10 million—would catalyze a spike in Chapter 12 farm bankruptcy filings. Recent agricultural lending and other economic data indicateContinue reading “Chapter 12’s New $10 Million Debt Limit: Will Farm Bankruptcy Filings Spike?”