More Wisconsin farmers filing for bankruptcy
The economic effects of the coronavirus appear to be pushing more Wisconsin farmers into bankruptcy.
Court records show that 36 farmers have filed by Chapter 12 bankruptcy since the first of the year. In 2019, there were 57 similar filings for the entire year,
Dairy farmers were already dealing with depressed milk prices before COVID-19 shutdown restaurants, schools and dried up other markets for dairy products.
Corn producers have also felt the sting through a reduced demand for the fuel additive ethanol as fewer people are on the road.
Chapter 12 allows eligible family farms to restructure their finances and avoid liquidation.
Congress more than doubled the allowed debt cap for a Chapter 12 filing last fall to make more farmers eligible. Legislators said the higher cap of $10 million reflects increased land values and bigger farms.