Chapter 12 Bankruptcy on the rise
Of the 116 filings in the first quarter of 2018, nearly 70 percent of the bankruptcies were in farm country, i.e. dairy, corn, cotton, soybean and wheat producing areas. In these areas, year-over-year increases in Chapter 12 filings ranged from up 63 percent to up 108 percent, Figure 1. The higher bankruptcy levels in these areas are likely attributable to continued declines in cash receipts for dairy, wheat, corn and cotton, as projected by USDA.