Farm Law and Ag Law Blog

Farmers face another brutal year in 2019 March 8, 2019  Category:  Politics by  Farm News Media As farmers across the country prepare for the 2019 planting season, the one question on everyone’s minds seems to be: will the new Farm Bill provide an adequate safety net to see farm families through another brutal year? The  Wall Street Journal  and  Politico  have both reported on farm bankruptcies rising to the highest level in at least 10 years. Asked about these troubling reports, House Agriculture Chairman Collin Peterson (D-MN) said, “I have been saying for a year people are nervous.” Meanwhile, Senate Agriculture Chairman Pat Roberts (R-KS) noted the Farm Bill can help farmers “but we need price recovery.” House Agriculture Committee Ranking Member Mike Conaway (R-TX) may have been the canary in the coalmine on this question, arguing throughout the Farm Bill process that the safety net provisions of the Farm Bill must be stre...

In the not so distant past, economics played a lesser role in farm succession planning.      Let’s face it, with 7 dollar corn and 15 dollar beans, their generally was ample money to bring in the next generation into the farming operation and/or have the next generation buy out the older generation.   Now, with prices that are break even or below, economics play a much greater role.                The question becomes how do we ensure the next generation can financially afford to take over the farm?   I was recently asked how does a farm family pass on a farm if the next generation cannot afford it.   We all know it is next to impossible for someone to break into farming due to the capital costs of land, machinery, and so forth.   So, how do we expect the next farming generation to do the same?             ...

‘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, ...

Will your farm be in the 97% club or the 3% club? One of the overriding goals that farmers have is that their farm operation continues on to a successor.  Then why is it so difficult to get farmers to put a succession plan in place?    A recent statistic stated that only 33% of all farms in this country will pass to the next generation.  That number does not seem shocking.  Of the farmers that are over 60 years old, representing the “current generation”, it is entirely plausible that only 1/3 of the farms transfer to the “next generation” (i.e. people aged 30-60) over the next 15-20 years when the current generation retires.                The same statistic source went on to say that of the 33% of farms that transfer to the “next generation” only 10% of those will pass to a third generation.   Whoa.   Let’s take a second and do some math.   We have roughly...

  Midwest Seminar Focuses on Current Financial Challenges in Farming  Last week we had two live seminars addressing challenges we are facing as farmers in the current farm economy.  Numerous farmers attended our seminars and many more attended via our internet live stream.  Overall, people were very engaged with the speakers and a lot of useful information was provided. Thank you to Doug Adelsperger for speaking on Chapter 12 bankruptcy and bankruptcy alternatives.   I would also like to thank Todd Landrum for speaking on alternative financing that centers around an operating loan being provided that is secured by growing crops, and not hard assets such as land and machinery.  Lastly, thank you to Mike Gustafson who traveled all the way from South Dakota to discuss the deferment of capital gains, which is a very important topic to the retiring farmer or farmer that is required to sell assets that are subject to capital gains.   ...

Upcoming Free Seminar Aims to Offer Preventative Maintenance as well as Real Time Help with Current Farm Economy.                            As many are aware, there will be upcoming seminars on January 22 and 23 that center around the challenges with the current farm economy.   The 22 nd will be at the Honeywell Center in Wabash, Indiana, at 6 pm, while on the 23 rd the location will be the Robin’s Nest Event Center, Battle Creek, Michigan, at 6 pm.   Those wishing to attend should call and RSVP at 260-351-4440.   I am thankful to the several professionals who have been gracious enough to give their time by pitching in to make this event come together.   The title of the seminar is “Navigating the Farm through Difficult Financial Times”.   Someone recently told me that they wished I had more of an upbeat topic to present.   I told this indi...

Midwest Professionals to Host Free Seminar to Assist Farmers            Please consider joining us for an upcoming seminar that will focus on current issues farmers are facing due to the downturn in the agricultural sector.  We are hopeful these topics will give farmers valuable information that can assist them during these difficult times.  N