Note: This is the final installment of a three-part blog series about ABLS clients and their debt resolution stories. In March and April, we shared the debt restructuring stories of retired and active Iowa farmers Jerry and Deb, and Paul and Linda, respectively. In this blog, meet a third Iowa farmer: Wade. Wade had his […]
Note: This is the second of a three-part blog series about ABLS clients and their debt resolution stories. In March we shared the story of retired Iowa farmers Jerry and Deb and the debt restructuring plan we developed for them. In this blog meet another Iowa farm couple, Paul and Linda. An average crop in […]
Poor crops. A barn fire. Disabling injuries. New bank managers who don’t know you and are less cooperative than the ones they replaced. Our clients have experienced devastating events like these, and more. Events that threatened to leave them destitute. In this month’s blog, and in April and May, we’ll share stories of three farm […]
Note: This is the second of a two-part blog series on buying or selling a farm Why do you want to sell your farm? Why do you want to buy a farm? In January, we wrote that before you put your farm on the market or negotiate a farm purchase, you should ask yourself those […]
For a deeper analysis into this topic, see a version of this article written for tax professionals and other interested parties here. On August 16, 2022, President Biden signed the Inflation Reduction Act (IRA) into law. Section 22006 of the IRA provided $3.1 billion for the United States Department of Agriculture (USDA) to provide relief […]
On August 16, 2022, President Biden signed the Inflation Reduction Act (IRA) into law. Section 22006 of the IRA provided $3.1 billion for the United States Department of Agriculture (USDA) to provide relief for distressed borrowers under certain Farm Service Agency (FSA) direct and guaranteed loans. On October 18, 2022, USDA provided nearly $800 million […]
Note: This is part one of a two-part blog series on buying or selling a farm. For part two, “Selling a farm: capital idea or capital gains tax?” see here. You want to buy or sell a farm. Before you push a “For Sale” sign into the ground or negotiate with the owner, make sure […]
You look at the December bank statement. It shows a checking account larger than a year ago. You’ve had a profitable year, right? Not necessarily. Just because you have money in the bank does not mean you made money. It may seem strange, but profitability and money in the bank are two different things, even […]
Farmer spouses who keep the operation’s books might not be spending long hours in the field or barn, but the time they devote to the financials can just as easily make or break the family business. The spouse manager must be proactive should they see expenses outpacing income. Debt can accumulate rapidly and could, if […]
Commodity prices are trending higher, yet many farmers are struggling to pay their bills. The reasons are varied but could spell disaster if producers don’t get a handle on their finances. So say Joe Peiffer, founder and shareholder of Ag & Business Legal Strategies, and Keith Starr, the firm’s chief financial strategist, as they discuss […]
In 2019, opioid manufacturer Purdue Pharma filed bankruptcy in the Southern District of New York. A large portion of the debt listed on its bankruptcy schedules came from judgments and potential lawsuits against it for its role in the opioid epidemic. Purdue’s owners, the Sackler family, were named in many of those lawsuits and would […]
When a consumer is facing bankruptcy, many are given the choice between Chapter 7 and Chapter 13. While some consumers have successful bankruptcies under these chapters, these gloves don’t fit many financially distressed consumers. The Consumer Bankruptcy Reform Act (CBRA) was introduced to streamline consumer bankruptcy and provide more consumers with the opportunity to receive […]
The hit TV show “Yellowstone” has achieved popularity with agricultural and non-agricultural audiences alike. Along with dramatized glimpses of ranching life, it also provides nuggets of truth with real world application. In a recent episode, while facilitating the sale of a family farm where one sibling couldn’t afford to buy the other out to retain […]
The choice of business entity for a farm is an important decision that can either protect farm owners and their families from the risks inherent in the farming enterprise or expose them to those risks. Farmers employ various forms of business entity, and the choice varies greatly between types of farms and their sizes. Many […]
Relief for Farmers Prior to 1986, a debtor intending to reorganize debts had two options for filing for bankruptcy: Chapter 11 or Chapter 13. Unfortunately, neither option was particularly well suited for family farmers. Chapter 11 provided a complicated and expensive route to relief, while Chapter 13 lent itself to reorganizing debt loads much lower […]
Attorneys’ fees can be significantly expensive for a party in a lawsuit, and often those fees cannot be recovered by the plaintiff even after winning a judgment. Many parties to a transaction will wisely include a provision in their contract stating that if a judgment is recovered with respect to the agreement then the prevailing […]
Few things capture the attention of agricultural producers like the weather. Farmers and ranchers often check the forecast multiple times a day in an attempt to stay ahead of any chances of inclement conditions. Wind, precipitation, and extreme temperatures can have significant effects on the health of animals and crops alike, so it is important […]
In bankruptcy, parties fight over a limited pool of assets while fees diminish what remains in the estate. While most creditors are responsible for paying their own attorneys’ fees, oversecured creditors are entitled to attorney fees from the debtor pursuant to 11 U.S.C. § 506(b) which states: To the extent that an allowed secured claim is […]
The decision to file bankruptcy is not one that is made lightly. By the time the petition is filed, there have likely been many difficult conversations and strategy sessions to make sure that the entity or individual is making the best move for the future. An essential part of that strategy involves considering the goals […]
Subchapter V (“Sub V”) of the Bankruptcy Code was created under the Small Business Reorganization Act (P.L. 116-54) to streamline bankruptcy cases and help more small business debtors successfully reorganize by lowering costs. Sub V was meant to strike a balance between Chapter 7 liquidation and Chapter 11 reorganization. Sub V created some significant benefits […]