In this file:
· Farm Bureau Economist Says Rise In Farm Bankruptcies A Huge Concern
· Farm bankruptcies reach decade-high levels
Farm Bureau Economist Says Rise In Farm Bankruptcies A Huge Concern
Radio 570 WNAX (SD)
Nov 1, 2019
Farm bankruptcies in the United States jumped 24 percent in September to its highest level since 2011. Nebraska had three more Chapter 12 bankruptcy filings in September bringing the year to date total to 35. That’s eight more than all of last year and more than in any full year since 2003. Nebraska Farm Bureau Senior Economist Jay Rempe says those rising numbers are a huge concern for the agricultural economy.
He says the continuing trade war with China is one of the reasons leading to those bankruptcies along with several other factors.
Rempe says federal farm payments along with disaster assistance, insurance and market facilitation program payments are helping some producers keep their heads above water. Without those, the economic impacts would be worse.
He says what would help...
more, including audio [1:39 min.]
Farm bankruptcies reach decade-high levels
By Rhiannon Branch, Brownfield
October 31, 2019
New data from the US Courts shows chapter 12 farm bankruptcies increased 24% in the 12-month period ending September 2019.
American Farm Bureau economist John Newton tells Brownfield there were 580 total filings with 255 in the Midwest – up 13% from year ago levels.
“I think it really signals the financial stress that we have experienced in the farm economy now for several years. We look for the trade aid and crop insurance benefits to hopefully reverse this trend soon.”
Newton says a notable Midwest state is Wisconsin with 48 filings – the highest in the last decade.
“We’ve seen the number of dairy farms that Wisconsin has lost accelerate in recent years and that really coincides with what we are seeing on the bankruptcy front.”
Newton says bankruptcies have been going uphill for a while and have not been this high since 2011, but are nowhere near the level of the 1980’s.
“We have historically low interest rates and the repayment maturity terms are at record highs, so farmers are finding more ways to stretch out that repayment period.”
When looking at the 3rd quarter of 2019, Newton says bankruptcies are starting to stabilize which he calls a glimmer of hope.
The number of chapter 12 bankruptcies in Brownfield states for this 12-month period include:
more, including bankruptcy maps, audio [4:54 min.]