A recent American Farm Bureau Federation report stated that highest number of farm bankruptcies have been reported from Wisconsin with 48 Chapter 12 filings over the 12-month period ending in September, followed by Georgia, Nebraska and Kansas, each of which had 37 filings. Minnesota, California, Texas, Iowa, Pennsylvania and New York round out the top 10 states for farm bankruptcies. Oklahoma experienced the largest increase in farm bankruptcy filings, rising from two filings last year to 17 this year. All regions of the U.S. saw an increase in filings, with the largest jumps in the Northwest (up by 74%) and West (up by 65%).
This downturn has been attributed to the ongoing trade war between China and US coupled with unfavourable conditions such as floods and droughts. Farmers in some states are diversifying their agricultural products and planting more hemp with the intention to increase their revenue.