Despite record levels of federal aid aimed at compensating for the pandemic and a slump in the agricultural economy, more farmers are declaring bankruptcy.

The Wall Street Journal reported about 580 farmers filed for chapter 12 bankruptcy protection in the 12-month time frame ending June 30. The newspaper attributed the information to federal data. The number represents an 8% increase from a year earlier.

This year, a record $33 billion in payments to farmers is expected to be paid out by the Trump administration. The funding would put government payments at 36% of farm incomes, according to the Journal, which cited information from the University of Missouri’s Food and Agricultural Policy Research Institute

And Paul Swanson, an Oshkosh, Wisconsin, attorney, noted: “Agricultural markets have been horrible, and the pandemic exacerbated it, big time.” Swanson said he is handling about a third more bankruptcy cases than last year.

Even before the pandemic, a grain glut, coupled with trade disputes, had taken a toll on farmers, the newspaper said. The coronavirus upended the food-supply chain as restaurants closed throughout the nation. And as meatpacking plants reported coronavirus infections among workers, prices for cattle and hogs slowed or halted productions.

Meanwhile, the coronavirus delayed the arrival of seasonal immigrants who help harvest wheat. This left farmers to depend on high school students, laid-off oilfield workers and others to help bring in the crops.

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