Farm Bureau Analysis Shows 2018 Farm Bankruptcy Statistics

An analysis by the American Farm Bureau Federation shows 2018 Chapter 12 family farmer and family fisherman bankruptcies dropped year-over-year nationwide.  Last year, 498 Chapter 12 filings were recorded, down 1% from 2017’s figures.  AFBF notes, however, that the U.S. had fewer farmers in the U.S. in 2018 compared to 2017.  And, the data shows bankruptcy filings in 19 states were higher than prior-year levels.

AFBF says the situation is likely to worsen.  Farm debt is record-high, and farm debt as a proportion of annual farm income is at 97%, a 32-year high.  However, AFBF also points out that bankruptcy does not mean the loss of the family farm.  Through a successful Chapter 12 bankruptcy, a farmer may have an opportunity to retain assets and continue the farm operation in some capacity.

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