Farm Law and Ag Law Blog

                                 This past week Congress was actually able to agree on something and the Family Farmer Relief Act of 2019 was passed.  The Act serves to raise the current debt limit for Chapter 12 from 4.2 million to 10 million.  Some have bemoaned this as only helping “big farms’, whatever that is, but in an era where a combine can approach a half million dollars, many smaller or medium sized farms found themselves up against the previous debt limit.   Without the ability to utilize Chapter 12, instead of restructuring, the famer is generally liquidating.             In helping many farm clients over the past year who have been experiencing financial difficulties, I am simply amazed at the inability of some lending institutions to work with the farmer who is experiencing financial difficulties.  Don’t get me wrong, some lenders have been very good to work with and are open to forbearance agreements, debt reconstruction, and other measures that keep the fa

‘This One Here Is Gonna Kick My Butt’—Farm Belt Bankruptcies Are Soaring Trade disputes over agriculture add pain to low commodity prices that have been grinding down American farmers for years Note:  This is an article that ran in the Wall Street Journal on February 7, 2019. I felt that it did a good job encompassing most of what farmers are dealing with...low prices, bankruptcies, depression, suicide, etc.   A wave of bankruptcies is sweeping the U.S. Farm Belt as trade disputes add pain to the low commodity prices that have been grinding down American farmers for years. Throughout much of the Midwest, U.S. farmers are filing for chapter 12 bankruptcy protection at levels not seen for at least a decade, a Wall Street Journal review of federal data shows. Bankruptcies in three regions covering major farm states last year rose to the highest level in at least 10 years. The Seventh Circuit Court of Appeals, which includes Illinois, Indiana and Wisconsin, had double the bank

The following is from the Arkansas University School of Law By  Susan Schneider  · May 15, 2015 · 2015 Ark. L. Notes 1686  In categories:  Administrative Law ,  Agricultural Law ,  Alternative Dispute Resolution ,  Bankruptcy ,  Business Law ,  Debtor/Creditor ,  Financial Institutions Law This overview of Chapter 12 Bankruptcy is written to provide an introduction to the basic Chapter 12 process, highlighting some of the issues that distinguish it from other types of bankruptcy and explaining how it may be useful to family farmers and family fisherman who are experiencing financial distress. There are many complex issues that extend far beyond the scope of this short overview. For more information, attorneys should consult the Bankruptcy Code and Rules as well as the relevant case law from your jurisdiction. I. Historical Perspectives Chapter 12 was added to the Bankruptcy Code in 1986 during a deep financial crisis in the farm economy. It was designed to provide a speci