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Illinois Holds Steady on Farm Bankruptcies

Illinois holds steady while neighboring states see spike in farm bankruptcies

The number of farm operations filing for bankruptcy in Illinois is holding steady despite spikes in neighboring states.

When a farmer files for bankruptcy, it’s done under Chapter 12 of the tax code. A report by the Federal Reserve Bank of Minneapolis said 84 farm operations in nearby states had filed for chapter 12 bankruptcy protection over the 12 months ending in June 2018 – more than twice the number seen in June 2014.

Researcher Robert Dinterman with Ohio State University says that Illinois seems to be resisting the trend of growing bankruptcies, despite low-profit margins and tightening credit lines.

He warns that delinquencies on bank loans, a common precursor to bankruptcies, are up in Illinois.