Farmer Bankruptcies on the Rise

08:37AM Feb 08, 2019

With the cost of borrowing money continuing to rise, consider asking your banker about using a fixed loan( MGN Online )

The Wall Street Journal reporting that a wave of Chapter 12 bankruptcies is sweeping across the US farm belt as trade disputes take a toll on businesses already hurt by low commodity prices. 

Federal data shows bankruptcies in major farm states last year rose to the highest level in at least 10 years.

According to the 7th Circuit Court of Appeals in the Midwest Illinois, Indiana and Wisconsin saw twice as many farmers declared bankruptcy in 2018 compared to those that did during 2008.

In the 8th Circuit from North Dakota to Arkansas, bankruptcies were up 96 percent.

In the 10th Circuit including Kansas Colorado and Oklahoma, they rose 59 percent. 

Last year, farm debt rose to $409 billion, with the average size of loans in the 4th quarter at $74,190, the highest 4th quarter level in history.

However, for perspective, Chapter 12 bankruptcy filings when looking at nationwide numbers are still below the highs of 2010. 

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