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Determinants of the Repeated Farm Bankruptcy

Author

Listed:
  • Sharma, Manish
  • Secor, Will
  • Rabinowitz, Adam
  • Goeringer, Paul

Abstract

The determinants of repeat Chapter 12 bankruptcy filings are assessed for the state of Georgia from 2008 to 2018. The probability of repeat filing is estimated using a logistic regression on the filer’s financial characteristics, filing/procedural circumstances, and the economic conditions at the time of the filing. US courts’ PACER tool and FJC’s IDB are utilized as the major data sources for the formulation of unique datasets for classifying and categorizing future filings. The total liabilities, one-year lagged prime rate, and dismissal in the prior case are positively associated with the probability of repeat filing. In contrast, a negative association of repeat filing is observed with total assets, farm earnings, and the percentage change in employment. We conclude that the filer’s financial, filing situation, and economic environment at the time of filing all contribute significantly to the occurrence of recurrent farm bankruptcy filings by the same entity.

Suggested Citation

  • Sharma, Manish & Secor, Will & Rabinowitz, Adam & Goeringer, Paul, 2025. "Determinants of the Repeated Farm Bankruptcy," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 360678, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea25:360678
    DOI: 10.22004/ag.econ.360678
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    References listed on IDEAS

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    1. Dixon, Bruce L. & Ma, Nan & Ahrendsen, Bruce L. & Settlage, Latisha A. & Stam, Jerome M., 2002. "Factors Affecting Chapter 12 Bankruptcy Filings in the United States: A Panel Data Model," 2002 Regional Committee NC-221, October 7-8, 2002, Denver, Colorado 132366, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    2. Ian Domowitz & Robert L. Sartain, 1999. "Determinants of the Consumer Bankruptcy Decision," Journal of Finance, American Finance Association, vol. 54(1), pages 403-420, February.
    3. Dinterman, Robert & Katchova, Ani, "undated". "Survival Analysis of Farm Bankruptcy Filings," 2018 Annual Meeting, August 5-7, Washington, D.C. 274117, Agricultural and Applied Economics Association.
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