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.