Farmer Bankruptcies on the Rise

February 8, 2019 08:37 AM
 
 

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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Comments

 
Spell Check

Red foreman
Point place, WI
2/10/2019 11:07 PM
 

  PJ instead of your Rod Serling delusions, why do you not relax and read a book my foot wrote, titled, On the road to in your a$$! Good luck with that one dumb a$$ !!!

 
 
ck
bad axe, MI
2/8/2019 06:07 PM
 

  Back when carter was president the credit market debt was under 5 trillion dollars in this country, 8640 john deere tractor was $65,000.00 brand new. seed corn was $40.00 a bag , potash was $85.00 a ton, farmland was in a crash and burn free fall from $3,000.00 to $600.00 an acre a year into the 21% interest. Now the credit market debt in this country is over 72 trillion, 9R john deere tractor is $400,000.00 plus, seed corn $250 a bag, potash $400 a ton, farmland $7,000.00 to $10,000.00 an acre. Corn price back in 1980 $ 2.00 to $3.00 a bushel , now Corn price is $3.00 to $4.00 a bushel. Interest at 21% on the US credit market debt of 5 trillion was 1 trillion a year in 1980. Interest on the 72 trillion of credit market debt the US has now at 6.75% is 5 trillion a year. The 150 million employed public and private sector workers in this country don't gross 5 trillion in wages a year in this country. That's why everyone crying.

 
 
Cathy
Funston, GA
2/8/2019 06:45 PM
 

  Same scenario with 30 yrs of inflation. Was nothing learned from history? Not by democrats in our government that claimed they were here to help you.

 
 

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