DECATUR, Ill. (WAND) – Many farmers may find themselves in bankruptcy court before this year’s harvest, as Chapter 12 bankruptcy filings are on the rise.
The USDA projects farm debt to hit $624.7 billion this year while net farm income falls to $153.4 billion.
April saw a significant spike, making it the highest month for bankruptcy filings in six years, dating back to February 2020.
The Midwest is the hardest-hit region with a 70% jump in bankruptcies. States with the highest number of bankruptcies are Minnesota, Arkansas, Texas, Georgia and Missouri.
Farmers have been hit with higher fertilizer, diesel, labor and chemical costs.
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