Farm Law and Ag Law Blog

It goes without saying that the past few years have been very difficult from a financial standpoint.  Simply stated, for many of us, the cost of production is above the cost we are receiving for our crops.  In fact, it has been said that net farm income is down 50% since 2012.    Farmers facing financial difficulty have not done anything wrong or bad.  Rather, they are merely a victim of the current times.  Many farmers who have had no debt at all for years if not decades are finding themselves taking on large amounts of debt. I have first hand experience with farm restructure.  My family had to perform some restructure on our own farm, and some hard decisions had to be made.  So, I have sympathy for fellow farmers that experience financial difficulties in these difficult times.  I will be there for you in helping you through the financial difficulties that you may be facing.  Together, we can work on getting you through the current financial issues.  I know full wel

What to look for in A Farm Bankruptcy Attorney.   First and foremost, understanding the business of agriculture is very important.  If the attorney has a solid understanding of the business of agriculture, it will be much easier for the farmer to educate the attorney on his farming operation rather than needing to teach the attorney the basics of farming.  Being raised on a farm and having studied agriculture are indispensable attributes for an attorney representing the financially troubled family farmer.  We have extensive farm experience through our families' farms.  You can rest assured you will not be needing to explain your farming operation to us. Experience in the tax implications of a farm restructuring both inside and outside of bankruptcy is essential.  Failure to fully consider the tax consequences when negotiating with creditors can result in the farmer incurring unexpected income taxes that can cripple their farming operation. Questions abound regarding hand

Schwarz Law Office is pleased to announce that it has partnered with Farm Aid to assist farmers.                                                       WWW. FARMAID.ORG "It is a real honor to be able to work with Farm Aid and provide legal assistance to farmers".  said John Schwarz.  Times are very tough, and I am hopeful our office will be able to help many farmers. Farm Aid features the best that music has to offer, while remaining true to its ultimate mission. GREAT MUSIC, SUPPORTING FARMERS, AND STRENGTHENING AMERICA SINCE 1985 Willie Nelson, Neil Young and John Mellencamp organized the first Farm Aid concert in 1985 to raise awareness about the loss of family farms and to raise funds to keep farm families on the land. Dave Matthews joined the Farm Aid Board of Directors in 2001. Farm Aid has raised more than $53 million to promote a strong and resilient family farm system of agriculture. Farm Aid is a nonprofit organization whose mission is to keep family fa

Caseload statistics from the  United States Courts  indicate that for the three-month period ending March 31, 2018, there were 116  Chapter 12 bankruptcy filings  in the U.S. These Chapter 12 bankruptcies are designed for "family farmers" or "family fishermen" with "regular annual income". While down slightly from the first quarter of 2017, during which 118 Chapter 12 bankruptcies were filed, the March data highlights the tough financial conditions across much of rural America. From the Northeast, into the western Corn Belt and Upper Midwest, down into the Southwest and into the West, farm bankruptcies are higher than year-ago levels.   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 t

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) does not receive an ample

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. These are no

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 can wreck havoc on our lives.   In short,