Successfully Resolving Distressed Agricultural Loans in Kansas By Michael D. Fielding1
I. Introduction
A
griculture is a major part of the Kansas economy. According to the Kansas Department of Agriculture, in 2017, there were more than 58,000 farms that generated over $18.7 billion in agricultural output.2 The vast majority of the farms (84.6%) were family owned, while 6.2% were in partnerships, 5.3% were held by corporations and the remainder was owned by cooperatives, estates/trust, etc.3 In 2017, the average age of a Kansas farmer was 58.1 years and the average farm acreage was 781.4 A whopping 87.5% of 30 The Journal of the Kansas Bar Association
all Kansas land (over 45 million acres) is farmland of which more than 21 million is used for row crop operations and another 14 million for pasture.5 Overall, the agricultural section is the biggest economic driver in the state employing almost 13% of the Kansas workforce.6 Farming is also extremely difficult. The weather is always unpredictable, market prices are impacted by global events and operating margins are very thin. Furthermore, international trade disputes, COVID-19 and government