Farm country is "not out of the woods yet" in the words of the American Farm Bureau Federation's chief economist John Newton, who says farm bankruptcies were slightly lower last year.
Caseload statistics from U.S. Courts indicate that Chapter 12 family farm and family fishery bankruptcies totaled 552 filings during 2020, down 43 filings, or seven percent, from 2019 third-highest over the last decade.
Newton cautions in a Farm Bureau Market Intel analysis, "these numbers should not be considered a sign that the farm economy has recovered." That's because in 33 of the 94 district court regions, Chapter 12 bankruptcies increased from prior years.
The Kansas City Federal Reserve reports delinquency rates at commercial banks continue to increase, and USDA has temporarily suspended debt collections, foreclosures and other activities on farm loans to support distressed farmer borrowers.