Farm Bureau analyzes farm bankruptcies
While well below historical highs, Chapter 12 family farm bankruptcies in 2019 increased by nearly 20% from the previous year, according to recently released data from the U.S. courts, the American Farm Bureau Federation said in a Market Intel
“Compared with figures from over the last decade, the 20% increase trails only 2010, the year following the Great Recession, when Chapter 12 bankruptcies rose 33%,” Farm Bureau Chief Economist John Newton wrote. Without the Market Facilitation Program trade aid payments, “farm-related income from crop and livestock sales in 2019 inflation-adjusted dollars would have been at the second-lowest level in the last decade at $63.6 billion,” Newton continued. “The corollary to this is that farm bankruptcies could have been worse considering the record-high farm debt of $415 billion (in nominal terms) and the likely difficulties servicing this debt without the revenue from the Market Facilitation Program.”
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