A Decade of Decisions for Better Debt Management
July 2026 isn’t just a notable birthday for the nation — it also happens to be the 10-year anniversary of when Ag & Business Legal Strategies founder Joe Peiffer opened his own firm specializing in farm and small business debt restructuring, bankruptcy, and related legal representation. And although the decision to leave his previous law firm and strike out on his own was made in relatively short order, coming up with the right name for this new business took more time. On July 1, 2016, Peiffer Law Office, P.C. opened its doors, but in October 2017 it was finally Ag & Business Legal Strategies… or, as a lot of folks refer to it, ABLS. “I worked on figuring out what I wanted my trade name to say,” Peiffer says of the wait. “I wanted people to know more about the firm by its name, as opposed to a person’s name. The ABLS name reflects what we work with here: ag people, business people, and how we help them strategize to figure out their best options, so we can empower them to pursue the best course of action.” If he had to boil down the ABLS mission to an elevator pitch? “We help farmers and small business owners get creditors off their back, preserve their assets, and minimize their taxes.” In 10 years, the mission hasn’t seen any changes, although technology has introduced some into the office. For example, Peiffer is looking into how to safely use artificial intelligence to help the attorneys quickly devise strategies for clients and conduct other research, while also protecting the firm’s and clients’ privacy. With Covid in 2020, ABLS had to learn how to meet with clients and courts at a distance — and keeping these remote options in place even now helps save on some time and travel expenses for both attorneys and clients. Fortunately at the time, ABLS had already switched over to using laptops instead of desktop computers, which made it easy to convert to a remote platform for delivery of legal services. Uncommon solutions A few years into ABLS’s tenure, Peiffer added the tagline: An Uncommon Law Firm. Sure, he wanted something to grab attention and differentiate his firm from others assisting farmers or small businesses. But it was also important that this hook be something true and meaningful. “We spend time learning a person’s business itself, whether it’s a farm or other kind of business,” he explains. “We don’t want to take a case to court until we have a plan of action in place.” As it turns out, each case is unique and there is rarely, if any, opportunity to use the same plan for two different clients. So “uncommon” captures the ABLS approach just about perfectly. An early case for the firm involved a client meeting to discuss options for restructuring farm debt in the millions of dollars. Early on, the farmer admitted to Peiffer he had forged grain contracts before handing them over to his accountant, who then unwittingly relied on those documents in preparing audited financials — which the bank used to decide to extend the farmer’s loan. There was, in fact, no grain to deliver. ABLS brought in an outside attorney to represent the farmer on potential criminal charges so all attorneys could negotiate with the bank to keep him out of prison. There have been many situations in which clients committed major mistakes before consulting with ABLS; not all could be considered criminal. But all must be faced head-on. “The first thing to do is to minimize the creditor’s loss, in order to maximize the client’s chances of staying out of jail where possible,” says Peiffer. “Our strategy is how to put the genie back in the bottle or at least minimize the loss that’s been caused by the mistake.” Debt restructuring and bankruptcy represent the main types of cases ABLS handles. Another significant portion of the caseload is tax planning for farmers looking into succession planning. Peiffer said a common situation is that a farmer transfers their land into a limited liability corporation, or LLC, for tax advantages and corporate liability shield. Unfortunately, when it comes time to bequeath the farm to the next generation, that LLC designation can eliminate the step-up in basis that individuals receive on the assets after death. (319) 363-1641 Advocacy matters too Representing clients is most of what Peiffer has done over the past decade with ABLS, but he’s also kept up with pushing for stronger federal and Iowa state legislation to protect farm and small business debtors — something he’s been passionate about since seeing how the 1980s Farm Crisis left so many producers ruined. These include stronger protections for farmers under Chapter 12, including deprioritizing federal tax liability that used to make it impossible to confirm a Chapter 12 plan of reorganization, as the secured creditor would get all the money while the IRS and state tax authorities had veto power over the confirmation. In many instances, since there was no money to pay the taxes, the farmer’s plan would not be confirmed and the case would be dismissed. He has also helped exempt IRAs from being liquidated to pay debt in bankruptcies. Too, Peiffer spearheaded a change of Iowa law that clarified how information about bankruptcies could be filed with court clerks as a bankruptcy transcript, which incurs a filing fee ($195) instead of paying for certified copies of the bankruptcy filings, then paying a recording fee ($5 a page, for 50 or more pages) so real estate titles can be easily transferred. In many cases, there is land in multiple counties that each require the bankruptcy data to be transferred — his legislative effort has saved many Iowans and their attorneys significant money and time. To do his legislative work, Peiffer has maintained relationships with elected officials in Congress and the state legislature, notably U.S. Senator Chuck Grassley. Just last month Iowa Governor Kim Reynolds signed into law the Uniform Assignment for Benefit
Don’t Wait to See How Harvest Plays Out
By Joseph PeifferFounding Attorney At nearly the halfway mark, 2026 is providing farmers with some of the most challenging economic times they’ve seen in a generation. This is from a combination of lower commodity prices than what they were seeing just a couple or so years ago, to increases in fertilizer, chemical, and other input costs. On the plus side, the One Big Beautiful Bill Act that Congress enacted last year contained safety net mechanisms that increased the statutory reference prices for key crops including corn and soybeans. This means higher ARC and PLC payouts are likely to be triggered. And the USDA is disbursing one-time bridge payments to some growers from a $12 billion fund announced to help offset losses stemming from tariffs President Trump put in place. On the down side, adding to the tariff-related losses and lower commodity prices are 50 percent higher fuel costs and other elevated input expenses because of the Iran war and subsequent difficulty getting products through the Strait of Hormuz. The payments mentioned above are better than nothing, but they’re a bandage — not a solid fix. Farmers would rather have stable, dependable markets for their products, than what they view as handouts. Instead, many are projected to lose money on the corn and soy acres they’ve planted this year. This is leading them to consider hard decisions, which is always better tackled sooner than later. Our office is receiving more calls than at this time last year, from farmers seeking help with debt restructuring or filing for Chapter 12 bankruptcy. I would have expected to hear from more in January or February than since mid-April, but that has not been the case. The first cash rents for the new farmland lease year were due March 1, and if a farmer was going to decide they wanted to trim their expenses or restructure debt for 2026, they had more options in January-February than they now have. Those who were unsure but pressed forward with renting to plant more anyway may have figured they could use their bridge payment to get through this season and then reevaluate after harvest. They were not expecting war nor its effect on expenses. (319) 363-1641 Potential Income Options Farmers who have significant operating capital and/or little to no debt are probably safe to weather 2026 to farm another year. That doesn’t mean they won’t lose money. But what does this year mean for those who don’t have that kind of capital and do have debt? If this is you, what can you do between now and harvest time to protect your financial interests? One of the first steps will be to review planned inputs for this summer. For example: It’s not that growers don’t normally consider this anyway, but 2026 will require even more examination of expenses versus return. If it looks like you’re only going to trade dollars one-for-one, why do it? If you can’t trim expenses enough to meet financial obligations, including loan and other debt payments, you may need to earn more income through an off-farm job, contract work such as harvesting or hauling grain or livestock for others, or finding other ways to add value to your operation. I have a client who has set up a transloading platform at his farm, where he can load crops and other commodities into containers to be shipped for export — this increases the price of his product by 50 cents per bushel. Other exporters have recently begun paying him to use the platform for their products as well. In addition, he recently attracted outside investment into opening a mixing facility to be able to ship specialized product to South Korea — an established mixing facility recently closed, so he took advantage of the brief market vacuum to fill a need. If you are a farmer with sufficient equity and liquidity, and vision, to do something like this right away, it’s certainly something to consider. But if this is not within your means and you don’t have an investor — and it won’t be, for most farmers — perhaps there is another way you can add value to your operation or find a market niche either without such a large investment. What should you be doing? If margins are tight but you are nonetheless making money this year, don’t be afraid to pay the taxes you owe. Borrowing to purchase equipment you don’t need right away, just to claim a large deduction against income and to lower taxes, might hurt you in the long run. The key here is “borrowing” — going into loan debt isn’t necessarily smarter than paying taxes, if you’re going to owe the bank for a while. If you can see that you will struggle this year to make loan payments, talk with your banker now. I can tell you after more than 40 years of this work that the farmer who comes to the bank, acknowledges their problem, and proposes how they can help solve it typically has more luck getting the bank to help them rework the loan than those who put off such a meeting. It’s never great to have the banker come to you after a default, when you had not told them that you would not be able to meet your debt service obligations. Finally, if your financial problems run deeper than one loan, it may be time to analyze operations and think about serious restructuring. Ag & Business Legal Strategies offers enterprise analysis, which reviews your liabilities and assets, revenue and expense streams, and shows you where you are losing and making money so you can decide how to move forward. If after this step you are still unsure how to proceed, our attorneys can help by reviewing options. Whether it is refiguring your operations, or needing to restructure debt or file for bankruptcy, Ag & Business Legal Strategies is dedicated to helping farmers work toward an outcome that is beneficial for their unique situation.
Bankruptcy Can Be A Vital Tool
Last week, in an article by Joe Mahon of the Federal Reserve Bank of Minneapolis, attorney Joe Peiffer shared valuable insight into the financial state of Iowa farmers. He also highlighted some potentially troubling issues on the horizon. The main concern Joe raised involves farmers’ borrowing habits. He explained, “…so what they’re doing is that they’re borrowing money on the land,” and as a result, “…increase the amount of payments we’re going to have to make next year.” Refinancing like this does kick the can down the road, but only pushes off addressing the underlying issues farmers face. Pressure is building for these farmers, and the situation may eventually reach a breaking point. Fortunately for them, farmers can currently restructure their debt thanks to the value of their land. Land is a finite resource and will likely retain its value. However, other factors—like declining soil quality—could put that lifeline at risk. It’s wise to have a backup plan. This “ace up your sleeve” could help farmers avoid disaster and start climbing out of debt. While some may shy away from it due to societal stigma, bankruptcy—especially Chapter 12—can be a powerful tool when used properly. For more details on Chapter 12 bankruptcy, check out our previous blog posts: Chapter 12: The Farmer’s Ally in Debt Recovery and Chapter 12 Bankruptcy: Is it Right for Me? or call us to discuss your situation at (319) 363-1641.
The Urgency for Risk Management
Earlier this week, attorney Austin J. Peiffer spoke with Erin Anderson from Brownfield Ag News. Their conversation focused on the urgency of risk management, especially as farm bankruptcies continue to rise. As we noted in our blog When it Comes to Farm Debt – Fish or Cut Bait, the data is clear. The Administrative Office of U.S. Courts reported 181 Chapter 12 bankruptcies filed in the first six months of this year. That’s a 57% increase compared to the same period last year. In all of last year, only 216 cases were filed. The trend is climbing—and experts expect even more filings in the year ahead. These numbers matter. They’re a warning sign. As a farmer or business owner, you can’t control the market. But you can control your own financial preparedness. That starts with being organized, covering all your bases, and doing more than just the basics. In the interview, Austin put it plainly: “If all you’re doing is updating your balance sheet at the end of the year, you’re operating in the dark for the year. If you’re funding your farm by rolling debt onto land or equipment, you might not see year after year your farm is losing money.” The message is simple: be prepared. You might be asking yourself: If so, you’re not alone. Many of our clients come to us with the same concerns. And that’s where Ag & Business Legal Strategies comes in. We’ve helped farmers and business owners manage risk, reorganize debt, and plan ahead—so they can keep farming and running their operations. Don’t wait. Reach out today. We’re here to help.
When it Comes to Farm Debt – Fish or Cut Bait
Of all the services we provide for farmers here at Ag & Business Legal Strategies, maybe the most important comes first: Helping you honestly assess your situation. Earlier this month several articles and editorials came out of a meeting Arkansas farmers had with their Congressional delegation, requesting federal assistance to save their farms. This is far from the first news of the year indicating rising financial troubles for farmers stemming from several contributing factors: continuing low commodity prices, tariffs and other trade challenges impacting global demand for U.S. agricultural goods, higher input costs, and weather events. Farm bankruptcies (Chapter 12) are up sharply in 2025: There is no shame in filing a bankruptcy if debt reorganization or other measures are no longer sufficient to address your farm’s issues. If fear is holding you back, keep in mind that bankruptcy doesn’t necessarily mean giving up your land or livelihood. Bankruptcy provides an opportunity to force a restructuring of farm debts if the farmer can satisfy the requirements of the bankruptcy code. And the sooner you act, the better your chances are of reorganizing instead of liquidating, or even avoiding bankruptcy altogether. If you are not to the point of considering bankruptcy, but still have worries about your farm’s financial situation, it is better to face difficult decisions and take action now—not later. Indecision is a decision to allow others to make decisions for you. Waiting too long means your bank, your landlord, your vendors, and other people’s attorneys will be calling the shots for you. We want to help you determine your own path as much as possible. How farm history matters Even if your farm or ag business is thriving, it’s worth examining if this is a solid streak or simply a good year. For that reason, every farmer and their bookkeeper should set aside time to review the farm’s finances several times a year. Since harvest is underway and the end of the year will be here before we know it, this is as great a time as any! While quick cash seems an attractive option for desperate times because it’s immediately available and the creditor doesn’t require collateral, the tradeoff is immediate fees and, if not paid back within a short time, compounding interest beyond a normal person’s ability to repay. You can read more of our advice on MCA pitfalls, and better alternatives, here. If you need help assessing your farm’s financial situation, Ag & Business Legal Strategies offers enterprise analysis. This examines the individual parts making up your farm or ag business to show you how each is contributing to profit and loss. Find out more about how this planning tool can save you lots of future time and trouble here. (319) 363-1641 Cash isn’t necessarily financial health Even if you have a positive bank balance, that should not be your only metric for financial stability. Cash on hand doesn’t always indicate profitability, which is tied to management decisions you’ve made that generate income, such as the return on new investment for crops or livestock production. If your positive balance is largely from non-production activities—say, the sale of capital assets (land or equipment, for instance), borrowing funds, or an inheritance payout—you didn’t generate profit. This is important because profit has the possibility of being sustainable, or repeatable. Unless you’ve won a tremendous lottery or your last name is Buffett or Gates, you probably can’t rely on capital gains or a one-time payment as future income. This also applies to cash from refinancing or selling a capital asset, such as taking out a second mortgage. Borrowing and pledging intermediate or long-term assets to make your current situation positive only increases loan payments in future years, further decreasing your ability to cash-flow your operations. We’ve written about profitability versus cash-on-hand in the blog before, which you can find here. The only failure is avoidance This has been a tough year on many farmers, not just in the upper Midwest. With lower commodity prices and higher costs, even if the past few years have been boom, you could be facing difficulties this year in paying all your creditors on time. Whether it’s rent, a bank loan repayment, or what you owe vendors, you need to know who has first security interest in your crops and other farm products so you can structure payments to creditors. In many instances, there will be more claims against the crops and other farm products than the cash from selling those assets. This is another topic we tackled previously, about this time last year. You can read more about collateral, liens, the danger of selling collateral without authorization to pay debts, and how our attorneys can help with negotiations here. If the above is the situation you believe you’ll find yourself in post-harvest, it is time to evaluate your options NOW so you can be proactive in addressing deficits. Ag & Business Legal Strategies has been helping farmers with this problem for many years. One of the reasons we started this blog was to help farmers and small business owners better understand not only the options available to address their financial and legal problems, but how imperative it is to seek assistance as soon as they realize they have a problem. You may have heard that failure to prepare is preparing to fail. We say that failure to make a decision IS a decision—to let others decide for you. Farm debt not dealt with in a timely manner leads to consequences that can range from bad to catastrophic, including added default interest, legal action, seizure of property, and possibly imprisonment for farmers who sell collateral without authorization and do not pay the secured creditor. The earlier you act, the better chance you have to maintain control of decisions over your own future. (319) 363-1641 At Ag & Business Legal Strategies, we want our clients to be honest with themselves and have a solid business plan. Our team will help you create and execute