A new Market Intel analysis from the American Farm Bureau Federation finds Chapter 12 farm bankruptcy filings were down 50 percent in 2021. The number of Chapter 12 filings last year is the lowest in the last decade, and this is the first time in at least ten years that there were fewer than 300 filings. For 2021, 276 Chapter 12 bankruptcies were filed across the nation.
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, the analysis notes that returns to farm operators have been incredibly volatile over the last decade, ranging from $58.6 billion to $134.5 billion between 2012 and 2021. 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.
(From the National Association of Farm Broadcasters)