Farm bankruptcy filings up for Nebraskan farmers in 2019

A Lincoln banker shares his thoughts about the pressing issue of farm bankruptcies on Monday.

According to the American Farm Bureau Federation, farm loan delinquencies and bankruptcies have risen by 13 percent around the country.

“We’re facing some real headwinds in the agricultural industry,” said Richard Baier, CEO of Nebraska Bankers Association. “Things like trade, increased production, weather disaster, all of those things are really making it complicated for our farmers.”

Baier says most farmers are holding on in these times. he says out of the 46,000 farms in the state, few have declared bankruptcy in 2019.

“Most recent numbers produced here by the court system here in Nebraska show 35 Chapter-12 bankruptcies in the state of Nebraska so far this year. that’s up from 22 a year ago,” adds Baier. 

In an article by the Market Intel, every region in the U.S. has increased farm bankruptcies except the southeast. Wisconsin, Kansas and Minnesota lead the nation in chapter 12 filings.

“Any time you a bankruptcy its significant to the families involved and we understand that, but I would tell you from a general perspective, many of our Ag producers continue to do well in the state of Nebraska,” says Baier.

He adds through the trials of flooding, international trade and tariff issues, Nebraskan farmers have stayed strong. Baier says when he works with farmers, their main concerns right now are rising taxes and prices.

“I would encourage farmers or ranchers who are struggling to get in and meet with their banker, be proactive and really tackle those financial challenges head-on and do it in a very cooperative environment,” said Baier. “That’s good for the farmer, that’s good for the banker and it’s really good for our communities.”