Farm Bankruptcies Fall in 2022
The number of farm bankruptcies fell again in 2022. Veronica Nigh, senior economist with the American Farm Bureau Federation, says the lower number of bankruptcy filings is good news.
Nigh… “2022 data from the U.S. courts show that Chapter 12 bankruptcy filings were down nearly 29 percent in 2022 compared to 2021. They came in at 169 filings, which is the first time that we had fewer than 200 filings since Chapter 12 became permanent in 2005.”
Nigh says farm bankruptcy trends tend to follow net farm income.
Nigh… “We certainly tend to see more Chapter 12 filings when net farm income is down, so just three years ago in 2019, we had 599 farm bankruptcies. Last year, with net farm income of $163 billion, that number of Chapter 12 filings should have been down, and we’re glad to see it.”
Nigh talks about what 2023 might hold for the farm economy.
Nigh… “USDA is projecting a decline in net farm income in 2023 of about 16 percent relative to 2022. So, while we hope this is a change that persists through 2023, a lower number of farm bankruptcies is anything but guaranteed.”
That’s Veronica Nigh with the American Farm Bureau Federation.