New Farm Bankruptcy Filings Delayed
- Dave Price
- 30 minutes ago
- 2 min read
Thanksgiving week, for those who can, is often a week of overeating and excess. It is also time for appreciation for America’s producers whose year-round efforts help to feed the traditional family gatherings.
The partial shutdown of the federal government might be prolonging the wait to find out how deeply some American farmers are suffering during this holiday week. The U.S. Bankruptcy Court does not yet show third quarter bankruptcy filings.
The third quarter ended on October 31.
Bankruptcy filings are among various reports that federal agencies have failed to release on schedule since so many employees were furloughed while Republicans and Democrats in Congress argued over how to temporarily fund the government. The shutdown ended on November 12.
Farm Bankruptcies by State
Court filings from the first half of the year have highlighted challenges faced by an increasing number of farmers, showing a troubling uptick in farm bankruptcies as low commodity prices challenged producers who have been dealing with financial stress due to tariffs, inflation, borrowing rates, and labor.
States with most farm bankruptcy filings (January 1- June 30):
1. Arkansas 19
2. Iowa 16
3. Georgia 15
4. California 12
5. Nebraska 11
University of Arkansas Assistant Professor of Agricultural Economics & Agribusiness Ryan Loy –who hosts “Morning Coffee and Ag Markets Podcast” -- told American Farmland Owner in August that any reported bankruptcy filings likely don’t fully represent the financial hardship.
“Any numbers that I'm reporting,” Loy said, “I'm likely understating them.”
The bankruptcy process takes time. Plus, farmers may exhaust all other options before resorting to bankruptcy. Some farmers were having difficult conversations with lenders during or after harvest as they tried to figure out financing options for next year’s plans.
Nebraska Grain Dealer Files for Bankruptcy
Much has changed in a year for Hansen-Mueller Co., the Omaha, Nebraska-based grain dealer, which announced that it is going through Chapter 11 bankruptcy.
On November 19, 2024, which was the last time that the company’s website listed anything under its “news” section, Hansen-Mueller celebrated a federal grant from the U.S. Department of Transportation’s Port Infrastructure Development Program (PIDP).
The federal money would mean “significant upgrades” to Hansen-Metro Elevation’s (HME) grain elevator at PHA Turning Basin, according to the company’s news release.
“The future of U.S. international agricultural trade has great momentum,” said Tyler Kester, President of Hansen-Mueller Co.
But that celebration has turned into hard economic circumstances for the company. The company said that it was, “pursuing a strategic financial restructuring to address its current financial challenges, facilitate the sale of its assets, and maximize recoveries for its creditors and stakeholders.”
Hansen-Mueller Co. had been a vital partner with farmers across the Midwest. The company operates nine grain elevators and trades wheat, oats, barley, sorghum, soybeans, and feed ingredients, according to World Grain.
Several unsuccessful business ventures helped lead to the company’s financial predicament. Those included an attempt to convert a pasta plant and plans to develop proprietary software.
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