Chapter 12 farm bankruptcies in Nebraska fell to 17 in 2021, down almost 50 percent from 2020 (Figure 2). Bankruptcies in Nebraska have averaged 20.6 filings per year since 2001. Last year’s filings were the lowest since 2016 when 12 were filed.
Figure 2. Chapter 12 Farm Bankruptcies in Nebraska, 2001-2021
Nebraska, though, was still among the top states in the number of farm bankrupticies (Figure 3). Wisconsin topped the nation with 27 filings, followed by Minnesota at 26, and Kansas with 19. Iowa had the same number as Nebraska. Veronica Nigh, an economist with AFBF, reports that bankruptcy filings were down in 36 states and 10 states had no filings. Nigh also reports that filings nationwhide in 2021 were the lowest in the last decade and the first time in 10 years that there were fewer than 300 filings nationwide.
The decline in bankruptcy filings provides more evidence of agriculture’s financial strength beginning the year. Whether the trend continues will depend in large part on producers’ ability to manage the high cost environment this year.
Figure 3. Chapter 12 Farm Bankruptcies by State, 2021