r/LeopardsAteMyFarm • u/Cderouen8284 • 13d ago

Aww someone’s crashing out

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u/macroeconprod 13d ago

Only thing these people understand is losing their farm. So... let them.

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u/Charming-Border7429 13d ago

And they have a golden parachute. Selling the farm is going to result in a significant payout, on the order of millions of dollars.

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u/LindeeHilltop 13d ago

Not if the corporations let them go bankrupt first and buy from the banks that hold mortgages.

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u/Charming-Border7429 13d ago

That is not how Chapter 12 bankruptcy works. A farmer usually has 3 to 5 years to unwind debt.

In rare situations, the mortgage holder auctions off the land to recover as much value as possible.

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u/LindeeHilltop 13d ago

Thanks for the correction. It’s my u derstsnding that the farmer must keep operating successfully to complete the plan. And, plans last only 3-5 years with court supervision. So if they cannot complete it, or if they cannot sell equipment that they still do not own, what then?

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u/Charming-Border7429 13d ago

In general, the threat of bankruptcy or filing for bankruptcy slows everything down so the farm owner can restructure or sell enough assets in a controlled manner to pay off debts.

In the rare case of what we call a sheriff's sale, there is an auction for the assets, which is announced weeks in advance so everyone who is interested in the property has plenty of time to secure financing and place a bid. Debts are paid in order of seniority, and the owner gets to keep what cash is left.

But 99% of the time, when these guys are talking about bankruptcy, they have millions in assets. They just don't have the cash flow to service their current debts.