‘We’re not out of the woods yet…’
Those were the words of one industry economist when asked about state of the ag economy as reflected in the farm bankruptcy rate.
Bankruptcies are down over the past 12 months for family farms. They are down seven percent compared to 2019. Economist John Newton says the drop off in filings should not be considered a sign the ag economy has recovered. U.S. Court filings in 33 of the 94 districts have seen a rise in Chapter 12 declarations. Also, delinquency rates at commercial banks are increasing. USDA has temporarily suspended debt collections and foreclosures to help support farmer borrowers.
Newton says the key to turning the farm economy around is COVID-19 recovery.
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