SIOUX FALLS, S.D. (KELO) — The American Farm Bureau Federation said it in December and recent data from the United States Courts supports it.
Farm bankruptcies rose in 2019, including in South Dakota. The state had 13 bankruptcies in 2019, according to United States Court data.
Farmers and fishing businesses can file Chapter 12 bankruptcy.
According to the American Farm Bureau, South Dakota had two farm bankruptcies in 2018.
There were 595 Chapter 12 bankruptcies in the U.S. in 2019 and 498 were filed in 2018, according to United States Courts data.
The 8th U.S. Judicial District which includes South Dakota, Minnesota, Iowa, Nebraska and several other states had 131 Chapter 12 bankruptcies compared to 110 in 2018.
A December 2018 study by Ohio State University said farm, or Chapter 12, bankruptcies had been relatively stable since 2012 after elevated filings in late 2009 through mid-2012.
Chapter 12 bankruptcy was designed for farms and commercial fishing businesses, according to the United States Courts. More than 50% of the prior year’s income including the husband and wife, must come from the farm or, for family farms, in each of the second and third prior years. The code also has debt and other guidelines that must be met in order to qualify to file Chapter 12, according to United States Courts.