Despite Record Levels of Federal Aid
Coronavirus pandemic adds strain to agricultural economy already reeling from trade fights, commodity glut
More U.S. farmers are filing for bankruptcy, as federal payments projected to reach record levels this year fall short of compensating for the coronavirus pandemic and a yearslong slump in the agricultural economy.
About 580 farmers filed for chapter 12 bankruptcy protection in the 12-month period ended June 30, according to federal data. That was 8% more than a year earlier, though bankruptcies slowed slightly in the first half of 2020 partly because of an infusion of federal aid and hurdles to filing during the pandemic,...
Why it matters: Farmers found themselves at the center of industries hardest-hit by the crisis as the pandemic slashed commodity values, cut off supply chains and closed markets around the globe.
By the numbers: 8% more farmers filed for bankruptcy in the 12-month period ending June 30 than last year. Chapter 12 bankruptcies have been gradually increasing since 2016.
