Farm Bankruptcies Down Dramatically in 2021

According to the American Farm Bureau Federation, Chapter 12 farm bankruptcy filings were down 50% last year. The number of Chapter 12 filings in 2021 was the lowest in the last decade, and was the first year in a decade in which the number of filings nationwide was below 300. The decrease in bankruptcy filings is a noteworthy shift, according to Farm Bureau, given the significant increases in the number of bankruptcies over the previous three years.

However, analysts noted that returns to farm operators have been incredibly volatile over the last decade, ranging from $58.6 billion in 2012 to $134.5 billion last year. The USDA projects 2022 returns at $95.2 billion. And, while the last year has brought higher commodity prices for some, it has certainly brought higher input costs for all.

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