This is not the news anyone wants to hear. Farm bankruptcies increased 55% percent in one year. And if the current pace is any indicator, it will be even higher this year.
Farmers are struggling with low prices for their commodities and the high cost of machinery, labor, insurance, seed, fuel, and repairs.
The Federal Reserve Bank in Chicago says their share of farm loans are having “major or severe” repayment problems. In the Kansas City Fed district, farm debt is growing and the delinquent loans are increasing right along with it.
So far, the state of Iowa has had the most bankruptcies this year.