MINNEAPOLIS (AP) – The number of farms filing for bankruptcy is increasing across the Upper Midwest.
A new analysis from the Federal Reserve Bank of Minneapolis shows 84 farms filed for bankruptcy in Wisconsin, Minnesota, North Dakota, South Dakota and Montana in the 12 months that ended in June. That’s more than double the number over the same period in 2013 and 2014.
The Star Tribune reports the increase in Chapter 12 filings reflect low prices for corn, soybeans, milk and beef. The situation has gotten worse for farmers since June because of the retaliatory tariffs that have closed the Chinese market for soybeans and held back exports of milk and beef. Chapter 12 bankruptcy allows for repayment of debt over three years.
Minneapolis Fed analyst Ron Wirtz says the bankruptcy trend has not yet peaked.
Information from: Star Tribune, http://www.startribune.com