Farming businesses are highly susceptible to many external factors and changes that are beyond their control, but greatly impact their operations. These issues include weather-related concerns, market volatility in commodity pricing and farm land valuations, and transportation price uncertainties. These and others may cause large swings in the profitability of an agricultural operation.

Chapter 12 bankruptcy has some unique and special provisions that attempt to address helping farmers emerge, get a fresh start, and reorganize their finances. Our attorneys and paralegals understand that farmers work from dawn to dusk, and around the weather. We strive to be flexible and accommodating to our clients’ schedules.

We have seen problems when the agricultural lenders lacked familiarity with the operational issues. Cattle cases have been one setting where disputes over multiple liens and priorities of liens and claims can be extensive and complex.

Other issues we have seen include, but are not limited to:

  • Agricultural land leases
  • PACA and PASA liens and trusts
  • Land rights relating to farm subsidies
  • Distribution issues with farm products and subsidies
  • Dealing with trade organizations and governmental/regulatory agencies
  • USDA lending and guarantees through Farm Credit
  • Commodities trading

The farming market is cyclical and fluctuates, with constant uncertainties on the local, regional, national and global levels.

For further reading, please visit our blog:

Chapter 12: Now Open for Real Agricultural Business

Sixth Circuit BAP on Chapter 12

Defining Family Farmer: Eligibility for Chapter 12 Bankruptcy