Survival analysis of farm bankruptcy filings: Evaluating the time to completion of chapter 12 bankruptcy cases

Dinterman, Robert; Katchova, Ani L.

doi:10.1002/agr.21662

Cited by 5 publications

(18 citation statements)

References 19 publications

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“…According to the American Farm Bureau Federation, Chapter 12 bankruptcies in the U.S. are at their highest overall rate in a decade (American Farm Bureau Federation 2019). Dinterman and Katchova (2021) also document a steady rise in debt levels for Chapter 12 bankruptcy filers and an increase in bankruptcy completion times since 2007.…”

Section: Introductionmentioning

confidence: 90%

“…Little research has analyzed filing-level data in the chapter 12 literature. Dinterman and Katchova (2021) is a recent exception. This research analyzes how long chapter 12 bankruptcies are in the court system and the determinants for this length using publicly available filing-level data.…”

Section: Chapter 12 Bankruptcymentioning

confidence: 99%

“…The authors suggest that higher debt levels contribute to a longer time in court. While this is not unique to Chapter 12 filers, Chapter 12 filings have seen debt levels increase over time, making it an important issue (Dinterman and Katchova, 2021).…”

Section: Afr 822mentioning

confidence: 99%

“…While able to use some filing-level data and finding it beneficial, Dinterman and Katchova (2021) also describe some of its limitations. This includes not having land transaction information and its tax implications (Dinterman and Katchova, 2021).…”

Section: Chapter 12 Bankruptcymentioning

confidence: 99%

“…According to the American Farm Bureau Federation, Chapter 12 bankruptcies in the US are at their highest overall rate in a decade (American Farm Bureau Federation, 2019). Dinterman and Katchova (2021) also Bankruptcy and Nontraditional lending 329 document a steady rise in debt levels for Chapter 12 bankruptcy filers and an increase in bankruptcy completion times since 2007. While there are national trends of increasing debt with nontraditional lenders, this varies across the country, ranging from 18% in Wisconsin to 49% in Georgia (Ifft et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

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An economic analysis of nontraditional lending in Chapter 12 bankruptcy cases

Rabinowitz

Secor

2021

AFR

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PurposeNontraditional lenders are important credit providers for farmers. However, previous research has found that farmers who use nontraditional lenders are riskier lending opportunities. Using a unique dataset of Chapter 12 bankruptcy cases, the authors analyze the share of payment that is made or allowed by the courts on debt owed to traditional and nontraditional lenders.Design/methodology/approachThe authors use a Tobit model to calculate parameter estimates and marginal effects of the impact of creditor type (traditional/nontraditional) and debt classification (secured, priority and unsecured) on the proportion of a bankruptcy claim that lenders receive or are expected to receive when a case is discharged.FindingsThe authors find that traditional lenders with secured debt receive a greater repayment than nontraditional lenders. Meanwhile, there are more than twice the number of nontraditional lenders that are owed debt in these bankruptcy claims. While this raises concern for nontraditional lenders, that is mitigated some by the level of debt that is on average about one-sixth the size of the average debt of traditional lenders. Finally, the authors show there are numerous opportunities for future research in this area using case level bankruptcy data.Originality/valueThis paper fills a research gap by focusing on the state of nontraditional lenders in Chapter 12 bankruptcy cases and their treatment in discharged cases.

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Section: Introductionmentioning

confidence: 90%

Section: Chapter 12 Bankruptcymentioning

confidence: 99%

Section: Afr 822mentioning

confidence: 99%

Section: Chapter 12 Bankruptcymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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An economic analysis of nontraditional lending in Chapter 12 bankruptcy cases

Rabinowitz

Secor

2021

AFR

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Predicting repeat consumer bankruptcy: A survival analysis of business‐related repeat filings in Australia 2007–2021

Robinson,

Smith,

Wicht

et al. 2024

Intl Insolvency Rev

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Ongoing legislative responses to the impacts of the pandemic have prompted many countries to evaluate whether their bankruptcy systems remain fit for purpose. Moreover, the current climate highlights the importance of data‐driven policy, which the literature identifies as a deficiency of bankruptcy regimes. In Australia, the 2015 reform proposals to reduce the default discharge period from 3 years to 1 year are currently being revised amidst stakeholder concern about potential abuse and repeat bankrupts. Although an extensive body of literature exists on ‘repeat filers’ in the USA, there has been no equivalent study in Australia. Using our data of 153,526 bankruptcies between 2007 and 2021, we conducted a novel application of survival analysis to predict the probability of a repeat bankruptcy comparing business and non‐business groups. The results show that this probability peaked in both male and females with non‐business‐related administrations irrespective of client's age, employment and relationship status. These findings are important as they identify the prospects that certain bankrupt groups have higher rates of repeat bankruptcy, which can inform strategies to improve their survival rate. A significance of our study is the development of a high‐quality longitudinal dataset that facilitates the extension of the data models and allows easy updates about targeted questions involving bankruptcy‐related policy shifts and impacts on sub‐populations. This methodological approach will enable regulators and insolvency experts to address concerns of repeat bankruptcy to guide policy, evaluate reform and extend the evidence base in other jurisdictions.

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The effect of crop insurance on agricultural loan delinquencies

Lee,

Chen,

Rejesus

et al. 2024

J of Agr & App Econ Assoc

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This study addresses how participation in the Federal crop insurance program influences agricultural loan delinquencies. To achieve this objective, we use 1994–2015 county‐level panel data for corn production in the Midwestern United States (US). Traditional linear fixed effect (FE) models, instrumental variable‐based FE estimation, and several robustness checks are used in the empirical analysis. Estimation results suggest that counties with higher levels of crop insurance participation tend to have statistically lower rates of agricultural loan delinquency. This is evidence that the US crop insurance program helps reduce financial stress and facilitates the continued viability of the agricultural credit system.

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Survival analysis of farm bankruptcy filings: Evaluating the time to completion of chapter 12 bankruptcy cases

Cited by 5 publications

References 19 publications

An economic analysis of nontraditional lending in Chapter 12 bankruptcy cases

An economic analysis of nontraditional lending in Chapter 12 bankruptcy cases

Predicting repeat consumer bankruptcy: A survival analysis of business‐related repeat filings in Australia 2007–2021

The effect of crop insurance on agricultural loan delinquencies

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