Wisconsin farm bankruptcies are on the rise as the effect of coronavirus on the economy pushes already weakened businesses over the edge, the Milwaukee Journal Sentinel reported. Since Jan. 1, court records show, 36 farmers have filed for chapter 12. By comparison, there were 57 chapter 12 filings in Wisconsin in all of 2019. In the last few years, thousands of dairy farmers have lost money as they've milked cows in an oversupplied market that's depressed prices. Lately, the industry has been devastated by coronavirus shutdowns. About one-third of the state’s dairy products, mostly cheese, is sold in the food-service trade that's seen sales nosedive from the shutdown of restaurants, schools, sporting events, festivals and other markets for dairy products. And it's not just dairy feeling the pain. Corn producers have experienced it through the closure of ethanol plants as demand for the fuel additive has dried up with less consumption of gasoline. Livestock farmers have felt it through trade wars and coronavirus disruptions of export markets. Last fall, Congress more than doubled the allowed debt cap for a chapter 12 filing to make more farmers eligible. Legislators said the higher cap, now set at $10 million, reflects increased land values and bigger farms. "One of the reasons we may see an uptick in chapter 12 filings is it's sometimes easier to get financing approved when a farm is in bankruptcy than when it's not. Outside of bankruptcy, there's usually a lien there, sometimes more than one. In bankruptcy, you can get a court order saying that the crop lender is in first place," said bankruptcy attorney David Krekeler.
