Farm Law and Ag Law Blog

Anyone involved in agriculture knows that we are currently experiencing tough times.  Several years of low commodity prices have eroded much from the “good years” that we all experienced a few years back.  However, most of us realize that farming is cyclical and are hopeful for better times ahead. Succession planning and family fairness issues are easier in good times.  For example, if a husband and wife have three children, only one of which farms, the couple knows that in good economic times the farming child has a greater ability to buy out non-farm children.  As such, a husband and wife may have a plan where all three children inherit equally, knowing that the farming child will utilize the good economic times to purchase the interests of the non-farming children. PREPARING FOR HARD TIMES The outcome changes greatly in harder economic times.  First of all, if the farming child(ren) d...

MAKING THE DECISION This is the and final article in our series on Chapter 12 Farm Restructure (also see  The Basics  and  The Process ). As has been explained, Chapter 12 is part of the bankruptcy code that exists to give farmers a chance to restructure their farms. Had chapter 12 existed in the 1980’s, the number of farms going out of business likely would have been a lot less. As a young boy, I remember the 1980’s farm crisis. Most of you reading this article no doubt remember the difficulties of farming in that decade. Current times in farming are no doubt difficult. Although some parallels with the current farm economy can be drawn to that of the 1980’s, at least interest rates are not 18% like they were in the 1980’s. However, at the end of the day, we still are faced with the fact that farm income has dropped over 40% since 2012. Also, we are still faced with the fact that for many producers the cost of production exceeds income from crop production...

Chapter 12 Bankruptcy or Farm restructures may save a life. As I write this article it goes without saying that the farm economy is experiencing some tough times.   Many farmers have had to make some tough decisions this year.   I have read that help lines for farmers have been worked overtime with farmers calling in due to financial strain.   It has been said that help lines have been used more than even in the 1980’s.   I have also read that depression and mental strain have greatly increased over the past year among farmers to the point that suicides among farmers have increased and are outpacing what transpired in the 1980’s.   It is sad that there are those among us that believe the end has arrived and there are no viable options.   As farmers, we face a large amount of uncertainties.   We have unpredictable weather, prices, pests, and everything else.   Not to mention a year like this year when we have government policies that ca...

Let a fellow farmer help you with a farm restructure or farm bankruptcy. John has been a farmer his entire life.  He knows how hard and unpredictable farming can be.  If you need help with a restructure or bankruptcy for your farm, doesn't it make sense to have a fellow farmer help you out?  John's extensive knowledge of farming will help you tremendously with your farming matter.  Most of all, John is passionate about saving family farms.  John will work closely with you to ensure you farm survives.   No matter where you are located, John is willing to try and give you assistance.   Give John a call to see if he can be of help.  

Farm Bankruptcy Continued. This article is a follow up to the last article on Chapter 12,  The Basics of Chapter 12 Farm Restructure , and will discuss the Chapter 12 process. First, in Chapter 12, a petition is filed by the farmer in Federal Bankruptcy Court. A bankruptcy trustee will be then be appointed. The Trustee is there to monitor the bankruptcy. Also, the Trustee will participate in most of the hearings that are held by the bankruptcy court. The Trustee is also in charge of ensuring that the debtor makes timely payments that are required under the plan. Unless the Court orders otherwise, the Trustee is there to ensure that payments under the plan are made to the trustee for eventual payment to creditors. After the filing, the farmer has 90 days to submit a reorganization plan to the Court. The good news is that unlike in a Chapter 11 bankruptcy, in a Chapter 12 the farmer does not need approval of the creditors through a voting process. A party in interest can objec...

Farm Bankruptcy:  Chapter 12 Bankruptcy can save the family farm . Times are tough across the country with the current farm economy.   The current farm economy may very well force some difficult decisions upon many family farms. Fortunately, after the implosion of the farm economy in the 1980’s, Chapter 12 was added to the Federal Bankruptcy Code.  Chapter 12 exists to provide a special type of restructuring opportunity for family farms. While not so much as in the past, it is probably fair to say that there is a sort of stigma that exists through the farming industry about electing to engage in bankruptcy.  Likely, this stems from people believing they have failed if they have to utilize bankruptcy.  Honestly, I wish the official name for a “Chapter 12 Bankruptcy” was instead something along the lines of a “Chapter 12 Legal Farm Restructure”. In fact, the title for Chapter 12 in the Bankruptcy Code is “Adjustment of Debts of a Family Farmer or Fisherma...