Farmers Turn to Bankruptcy as Low Prices Continue
FERGUS FALLS -- Minnesota farmers are suffering with continuing rock bottom prices for their commodities, driving some into bankruptcy.
Crop, livestock and dairy farms are all feeling the financial pain.
John Quaal operates a dairy farm near Fergus Falls. He says it's nearly impossible to break even producing milk. Quaal's farm has lost as much as $40,000 in a single month.
Quaal says it's pretty hard to go to the bank and borrow money with a negative cash flow, so Chapter 12 bankruptcy seems the best route to go. His family will continue to milk nearly 300 cows, but have more time to pay off debt.
The number of troubled agricultural loans is rising statewide and the number of farmers offered mediation by lenders is up 20 percent so far this year.