Check our advice monitor at ProFarmer.com for updates to our marketing plan.
There were 62 bankruptcies launched under Chapter 12 in April, a jump of 130% from the same month last year and the highest monthly total since February 2020, Law360 reported. Chapter 12 is the bankruptcy process for farmers that allows them to reorganize debt in an effort to avoid asset liquidation or foreclosure.
- “This down period for crop farmers has been going on for several years now,’ said Robert E. Moore, an attorney and research specialist at The Ohio State University Extension’s Agricultural and Resource Law Program. ‘Each year that we don’t start on the upswing is just more and more stress on farmers, and I think the higher diesel prices, the higher fertilizer prices, it’s just made 2026 the breaking point.’”
The report said the last time bankruptcies were this elevated was in February 2020, when bankruptcy rates were also higher before dropping during the Covid pandemic. Law360 said there have been at least 158 Chapter 12 filings nationwide so far in 2026, with the most in Arkansas, Missouri and California, according to Equip data, noting that as there are few Chapter 12 filings generally, even a small numerical rise can look large.
Ceasefire extension?: Oil futures ended little changed, giving up earlier gains, as traders weighed news reports that the U.S. and Iran had reached a memorandum of understanding on a 60-day extension of the ceasefire and to begin talks over Iran’s nuclear program. West Texas Intermediate crude finished 0.2% higher at $88.90 a barrel, while Brent futures rose 0.5% to $42.72 a barrel.
Inflation woes, consumer squeeze: The Fed’s preferred inflation gauge – the personal consumption expenditures index – rose 0.4% in April after a 0.7% rise in March, leaving prices up 3.8% year over year. The core rate, which excludes food and energy, was up 3.3% from last year. The figures weren’t a surprise, but underscored that inflation continues to run well above the Fed’s 2% target and reinforced expectations that further rate cuts are off the table as Kevin Warsh begins his term as chair. At the same time, the data showed the savings rate dropped to 2.6% from 3.2% in March. Income growth was flat, while spending rose 0.5%, with four-tenths of the rise due to inflation.
- “Bottom line, inflation is again eating into REAL incomes and draining the savings rate,” said Peter Boockvar, chief investment officer of One Point BFG in his widely followed “Boock Report” newsletter.
USDA’s ‘Great American Cotton Plan’: USDA Secretary Brooke Rollins on Thursday announced the launch of the “Great American Cotton Plan,” described as an initiative to strengthen the cotton farm economy, restore domestic textile manufacturing, expand cotton trade opportunities, and boost demand for products made with U.S.-grown cotton.
USDA said that cotton producers face a fifth consecutive year of negative returns driven by rising input costs, trade distortions, and increasing competition from synthetic materials. As part of the plan, USDA said it would elevate the “Plant Not Plastic” initiative to encourage consumers to purchase products made with American cotton fibers rather than synthetic plastic-based alternatives.
45Z testimony: American Soybean Association Secretary Jordon Scott on Thursday testified before the U.S. Department of the Treasury and Internal Revenue Service during a public hearing on proposed regulations for the Section 45Z Clean Fuel Production Credit, urging the administration to finalize timely guidance that supports U.S. biofuels and expands demand for American-grown soybeans. In a news release, ASA said Scott highlighted the importance of recent statutory changes to 45Z that improve the competitiveness of soy-based biofuels by removing indirect land use change penalties on agricultural feedstocks. He also voiced support for provisions limiting eligibility for the tax credit to biofuels produced using feedstocks sourced within the United States, Mexico and Canada.
Scott also encouraged Treasury and IRS to continue developing policy that would allow farmers to benefit directly from climate-smart practices, including no-till and cover crops, through USDA’s Carbon Intensity Calculator.
Tyson gets new boss: Tyson Foods on Thursday said Jeff Schomburger will take over as president and CEO beginning Oct. 4, replacing Donnie King, who will remain on the meat-processing giant’s board. Schomburger has been a member of Tyson’s board since 2016.
The transition comes as the company deals with declines in its beef business due to high cattle prices while enjoying strength in its chicken operations, noted Food Dive, which said that the hire brings an executive with deep knowledge of the company’s business and wide experience when it comes to consumer packaged goods. Schomburger had a 35-year career at Procter & Gamble before retiring in 2019. Food Dive described Schomburger at “intimately familiar with Tyson and the challenges facing the meat and chicken business today due to his extensive time on the board.”
Hormel earnings get protein boost: Hormel Foods topped Wall Street estimates for fiscal second-quarter sales and profits, aided by strong demand for chicken and turkey products, Reuters reported. Growing inflation pressures and tariff-related volatility were credited with leading U.S. shoppers to stock up on pantry staples to cook meals at home instead of expensive dine-out options. Sales of the company’s protein-rich meats and snacks were aided by growing demand for high-protein foods.
Manitoba Deere dealers scrap merger: The merger of Manitoba’s two largest John Deere farm equipment dealers has been called off, according to RealAgriculture. The report said Greenvalley Equipment and Enns Brothers announced a plan to join forces in January, but GVE President Curwin Friesen says the arrangement has been cancelled, as the two companies encountered “considerable roadblocks and delays” by Canada’s federal Competition Bureau that made proceeding with the merger impractical.
Don’t miss these must-reads: