Fewer Farm Bankruptcies Filed
Chapter 12 farm bankruptcies in Nebraska fell to 8 filings in 2022, down over 50 percent from 2021 (Figure 3). Last year’s filing were third-lowest since 2001 with only 2004 and 2012 recording fewer farm bankruptcies and were the lowest since 2015 when only 8 were filed.
Figure 3. Annual Chapter 12 Bankruptcies in Nebraska
Source: US Bankruptcy Court.
Nebraska though, despite the decline, led Midwest states in the number of farm bankruptcies filed last year (Figure 4). Wisconsin, Iowa, Kansas, and South Dakota had 6 filings while Minnesota had 2, Missouri had 1, and North Dakota had none. New York topped all states with 16 filings. Veronica Nigh, an economist with American Farm Bureau Federation, says farm bankruptcy filings in the U.S. equaled 169, down 39 percent from 2021, and the lowest since the Chapter 12 became permanent in law in 2005. Last year also was the first time since 2005 that filings nationwide fell below 200.
The decline in farm bankruptcy filings is further evidence of agriculture’s financial strength. Like the income projections, the declining number of bankruptcies signal that as conditions now stand agricultural producers are in a strong position to manage their way through the uncertainties of 2023.
Figure 4. Farm Bankruptcie3s in 2022 by State
Source: Farm Bankruptcies Fall Again in 2022, Veronica Nigh, Senior Economist, American Farm Bureau Federation, Market Intel, March 23, 2023.
