Chapter 12 bankruptcies, the specific chapter designed for the farm community, have increased in 2019. However, that national trend may need some context.
“There’s some concern there, that’s a stressful situation for the farmers for the families, for the lenders, for everyone involved,” said Jackson Takach chief economist at Farmer Mac. “It’s not a fun thing to go through. What I will say is, although the percentages sound alarming, so, you hear numbers like 25% increase, they’re still very small. So, right now, we’re experiencing about 2.7 bankruptcies per 10,000 farms. And to put that into prospective, over the last ten years, we’ve averaged two. “
He notes that across the U.S., 100 to 125 more farms declared bankruptcy compared to 2018. Takach added the statistically small increase in Chapter 12 bankruptcies speaks positively to the ability of farmers to keep their operation running despite a 50% drop in income over recent years.
If you have a story idea for the Washington Ag Network, call (509) 547-1618, or e-mail [email protected]