A new national data project is providing a broader look at financial stress in farm country. The National Association of State Departments of Agriculture and the National Agricultural Law Center have launched the DEBT project, tracking ag bankruptcies under both Chapter 11 and Chapter 12.
From January 2021 through June of this year, the project identified 1,401 agricultural bankruptcy filings. 1,200 were Chapter 12 filings, specifically designed for family farmers and fishermen. Another 201 agricultural operations filed under Chapter 11, which allows businesses to reorganize debt while continuing to operate.
The groups say combining both chapters provides a more complete picture of financial challenges facing agriculture. The data, they noted, could help farmers, lenders, policymakers and researchers identify emerging trends, geographic patterns and areas of financial stress across the farm economy.
“DEBT is a first step in gaining a definitive, foundational picture of agricultural bankruptcy filings in the U.S. from 2021 onward,” NALC Director Harrison Pittman said. “We look forward to collaborating with NASDA and others partners and stakeholders in building on this foundation.”
The top five states for farm bankruptcies since 2021: California, Arkansas, Georgia, Iowa, Wisconsin. For more, Click Here.
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