Despite an incredibly challenging previous 18 months that included a global pandemic and tumultuous weather, higher commodity prices and well-timed government support have finally turned the tide on year-over-year increases in chapter 12 bankruptcy filings, the Wisconsin State Farmer reported. According to data from the U.S. Courts, from June 2020 through June 2021, there were a total of 438 chapter 12 bankruptcy filings, down 24%, or 142 bankruptcies. The number of chapter 12 filings over the previous 12 months is the lowest since 2015’s 357 filings. The decrease in bankruptcy filings is a noteworthy shift given the significant increases in the number of bankruptcies over the previous three years. The ongoing impact of the severe drought in the West and Upper Plains is evident in the number of chapter 12 bankruptcies filed in those regions. The region with the largest increase in the number of chapter 12 filings by both absolute number and by percentage increase was the Southwest, which had 13 more chapter 12 bankruptcies in the past year, an increase of 41% from the 12-month period ending June 2020. Total bankruptcies filed by state vary significantly, from no bankruptcies in some states to as many as 48 filings in others. Alaska, Connecticut, Hawaii, Nevada, Rhode Island, West Virginia and Wyoming had no chapter 12 bankruptcies filed in the past year. These states have consistently had low numbers of bankruptcies in the past decade. In contrast, Wisconsin, Minnesota and Kansas led the nation in chapter 12 filings; though there were fewer filings in each of these states than there were in the previous year.
