The limits for Chapter 12 are quite low when you look at the consolidation of farms that's happened in the last 10 years. Corn land in Iowa runs, say, 5-10k/ac

The limits for Chapter 12 are quite low when you look at the consolidation of farms that's happened in the last 10 years. Corn land in Iowa runs, say, 5-10k/acre depending on quality and location. 640 acres per square mile. 3.8 million on the low end to buy one square mile...but the Chapter 12 debt limit is $4,153,150. That doesn't count the 6 figure capex for the equipment, buildings, and the 5 figure spend for seeds, It's typically at the 2-3000 acre level where farms become economically viable. It's basically impossible to go from the city to a commodity corn, pig, or cow farmer. Disclaimer: I have been involved in efforts to increase the limit. https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-12-bankruptcy-basics https://www.uscourts.gov/services-forms/bankruptcy/bankruptc...