By Drew Viguet
National Agricultural Law Center
U of A System Division of Agriculture
April 7, 2025
Fast facts:
- Upcoming webinar highlights Farm Credit System borrower rights
- AgSouth Farm Credit’s Bob Mikell will present
- Registration is available at no cost online
FAYETTEVILLE, Ark. — As U.S. producers face growing economic uncertainty, tariffs, rising input costs, and more, it’s important that farmers, ranchers and those across the industry know how to navigate financial distress.
From 2023 to 2024, Chapter 12 bankruptcies for U.S. farms increased 55 percent, underscoring the mounting challenges faced by producers. This specific type of bankruptcy is designed for family farmers and fishermen to restructure debts to avoid the possibility of asset liquidation.
“The agricultural industry continues to face challenges with financial strain impacting producers and others across the country,” said Bob Mikell, executive vice president and general counsel at AgSouth Farm Credit. “With economic challenges persisting, understanding distress loan servicing options and borrower rights within the Farm Credit System is increasingly important for farmers, ranchers and other borrowers.”
The Farm Credit System was established in 1916 to provide credit and financial services to rural communities and agriculture. As of June 30, 2024, the Farm Credit System held $421 billion in outstanding debt —a 6 percent increase over the previous 12-month period, according to the Farm Credit Administration.
On April 16, the National Agricultural Law Center, or NALC, will host a webinar to address borrower rights and challenges. Titled “Distressed Loan Servicing and Borrower Rights in the Farm Credit System,” and presented by Mikell, the webinar will explore key aspects of borrower rights in the Farm Credit System. This includes loan restructuring, credit review hearings, the right of first refusal and more.
“Producers and those who work with them need to understand the distress loan process when dealing with Farm Credit System institutions, especially in times of financial difficulty like what we are in,” Mikell said. “Understanding restructuring options and borrower rights can make a significant difference when navigating current financial conditions.”
The webinar will begin at 11 a.m. Central/Noon Eastern. Registration is available free of charge at nationalaglawcenter.org/webinars/distressed-loan-servicing.
To read the full news release, click here.