A Way Out of Farming Debt

A recent Think Progress post (‘Behind India’s Epidemic of Farmer Suicides’) caught our eye. The article notes that ‘about every 30 minutes, a farmer in India commits suicide.’ Every 30 minutes. That’s a shocking number — and it got us thinking.

What about farmers in the United States? What are those suicide rates like? Do farmers in the US face the same problems that farmers in India are currently facing? And, most importantly, what kind of advice can we offer farmers in the United States that might be facing stress, the burden of debt, and the shame that comes with all of it?

Here’s what we discovered.

The Rate of Farmer Suicide in the United States

We don’t hear about farmer suicide a lot in the U.S. It’s not data that’s noted on the nightly news, and it’s not mentioned outside of very small circles. But none of that means that it doesn’t exist. It does. In high numbers.

A recent Center for Disease Control (CDC) report found that “…suicide rate among people engaged in agriculture (farmers, ranchers, farm laborers, fishers, and lumber harvesters) was the highest among 30 national Standard Occupational Classification groups.”

Another report from Newsweek states that some farmers have a higher rate of suicide than veterans (often noted as the group with the highest suicide rates). What’s going on? Why are so many farmers ending their lives? After reading through many different articles and reports, one of the main themes is debt.

The Psychological Shame of Debt

Shame is a killer. It’s an emotion that can eat away at someone until there’s seemingly no end in sight. It’s also a feeling that goes hand-in-hand with debt. Poor crop choices, low or no yield, and the inability to turn enough profit to keep animals fed and the land crops are grown on all weigh heavily on a farmer’s mind.

Newsweek notes that many farmers often live far from mental help facilities, too, which means that getting the help needed isn’t so easy to do. Secluded locations can also mean that farmers do not have access to the legal help required — and some are ‘reluctant to seek help.’

Some Viable Legal Options

Most farmers borrow money from a traditional source (like a bank) or through peer-to-peer lending (friends and family members or other private lenders). When bills pile up and there are no crops to sell, a massive increase in debt can make it hard to survive. It can — and it often does — seem like there’s no way out of this debt trap.

While the legal system is not perfect, a Chapter 12 bankruptcy filing might be the best option for some farmers. Under Chapter 12 (specifically created for agricultural workers), farmers can find some debt relief — this filing also allows the farmers to pay creditors, friends and family members.

A Few Helpful Tips

• In order to qualify for Chapter 12, a farmer must be able to prove a steady income. Typically, income is not an issue ( but rising operations costs are).
• A Chapter 12 filing gives farmers some breathing room. It gives them time to rethink and create a plan of reorganization.
• Anyone that has loaned a farmer money (including peers) can be considered a creditor under this filing.
• A Chapter 12 filing triggers the automatic stay and will stop most collection lawsuits or any other type of collection activity. This give the debtor (farmer) some breathing room to begin the reorganizing process without having to worry about collection activity.
• This type of bankruptcy filing allows the farm to continue operating. It does not mean that a farm will be closed and liquidated.

Every situation is unique, but a Chapter 12 filing can give farmers both a financial and mental break. It might be the difference between a feeling of ‘no way out’ and a way to figure things out.

Sadly, Chapter 12 isn’t something that most farmers know about without obtaining legal help. Let’s change that.