Farmers across the United States are facing serious financial strain. Low prices for row crops – the worst in decades – mean that many struggle to make up for the cost of operations. Farmers should know about the legal opportunities that can help them lift that burden and get out of debt in a way that will sustain their business and livelihood.
Farmers in Iowa face significant financial challenges.
While there has been a slight improvement in livestock margins for 2024, the high costs of inputs coupled with prices for row crops remaining below breakeven levels suggest that margins could be the worst they’ve been in nearly two decades.
Economic downturns and trade issues have hit farmers in Iowa particularly hard. Iowa’s farm debt is at its highest since the 1980s farm crisis. The state’s farm bankruptcy rate has increased by 71 percent in recent years, putting Iowa in 39th place for farmers’ financial security in the United States.
What financial support is available for struggling farmers?
Thankfully, farmers do not have to bear these challenges alone. The USDA is offering an extra $250 million in financial assistance to struggling farmers. This support can provide immediate support to those who need it most.
The Family Farmer Bankruptcy Clarification Act of 2017 also improved the ways that farmers can handle debts through bankruptcy. This act made it easier and more helpful for family farmers to use Chapter 12 bankruptcy. It includes changes like making certain government claims forgivable and stopping government units from blocking a reorganization plan. This allows farmers a path toward debt relief that is structured for their specific income and operations.
The agricultural sector in the United States is grappling with many financial challenges. However, there are ways to get help and support. By taking proactive steps and exploring all available options, farmers can work towards more financially stable future.