Chapter 12 was introduced in bankruptcy law as a temporary measure in 1986 and became permanent in 2005. With 169 filings, farm bankruptcies in 2022 were the lowest since Chapter 12 became permanent in 2005.
This comes just three years after the third-highest number of farm bankruptcy filings – 595 in 2019. According to data from the U.S. Courts, Chapter 12 bankruptcy filings were down nearly 39% from 2021.
This is the first time since Chapter 12 became permanent that there were fewer than 200 filings.