Farm Bankruptcy

Farm bankruptcy occurs when a farming operation cannot meet its financial obligations, often due to factors like low commodity prices, high operating costs, or natural disasters. This situation can lead to the inability to pay debts, such as loans for equipment or land. Farmers may seek legal protection under bankruptcy laws, allowing them to restructure debts or liquidate assets in an orderly manner. The process aims to provide a fresh start while balancing the interests of creditors. Agricultural bankruptcy can have significant economic impacts not only on farmers but also on local communities and the broader food supply chain.