Farm bankruptcies dropped by more than half last year as the boom in commodity prices and soaring exports buoyed profits, Bloomberg News reported. Only 276 operations across the country filed for chapter 12 bankruptcy, designed for farms, the lowest number in at least a decade, according to an analysis of court data by the American Farm Bureau Federation. In 2020, there were a near-record 560 filings, according to the Farm Bureau, despite three years of federal bailouts for trade war and Covid losses. American farmers’ profits soared last year to $119 billion, their highest since 2013, according to the U.S. Agriculture Department. U.S. farm exports set a record in 2021 as China boosted purchases by 25% and Mexico by 39%. Read more.
The unique aspects of farm bankruptcies, including significant tax benefits, are detailed in Chapter 12 from A to Z: A Guide to Bankruptcies of Family Farmers and Family Fishermen now available for purchase at the ABI Store.
