Bankruptcies are rising and are expecting to increase due to problems associated with COVID-19.
According to the American Farm Bureau Federation, Chapter 12 family farm bankruptcies for the 12 month period ending in March totaled 627 filings. That’s a 23% increase from the previous 12 months. It also marks five consecutive years of Chapter 12 bankruptcy increases, including an accelerated rate since January. Currently, the increase in bankruptcies is not related to the coronavirus pandemic. Those numbers will be released at a later date.
The American Farm Bureau Federation reports Wisconsin was the hardest hit with 78 filings in the 12 month period, followed by Nebraska with 41 Chapter 12 filings and Iowa at 37. More than 50 percent of the Chapter 12 filings were in the 13-state Midwest region, followed by 19 percent in the Southeast.
That number of 627 filings is the third-highest total over the last 20 years. There were 743 filings in 2011 and 632 fillings in 2003.
AFBF says the latest number is still below the historical highs of the 1980s.