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More Bankruptcy, Because Oil Prices Higher; Crude Hits 21/2 Year High

By Joseph McDaniel, Esq.

I like being right, except when I hate being right.

My previous post about oil continuing up, with occasional dips to make people bored so they don't do anything about it, was absolutely correct. 

And that makes me sad; when oil goes up, the cost of transporting goods goes up. And that drives costs up, here in the USA. And in Arizona in particular, where we favor pickup trucks. And we have wide-open spaces.

And since the price of hay hasn't gone up, and the expense of raising hay keeps going up (gasoline, right? and twine. And...everything else), we'll see a lot more farms throwing in the towel.

Now, I think family farms are a good thing. They produce far more efficiently and effectively than giant corporate conglomerations, and every farmer I've met has been a great person. Farming forces you to work hard, every single day (if you're too tired to slop the hogs or milk the cows or water the crops or bring in the crops, pretty soon you don't have a farm).

We've always had some of the most productive farmland in the world here in the United States; a lot of it has been paved over.

That's not a good thing, in the long run, if we all want to eat.

And why are there so few Chapter 12 Bankruptcy cases? Often, by the time a hard-working farmer comes in to talk to an Arizona Bankruptcy Attorney, he's so tired that it's time to shut the doors. And if everything you have in every single entity is encumbered by the bank to twice its current value, that makes things a little more difficult.

Not impossible, of course. Just more difficult.

Full post as published by Arizona Bankruptcy Attorney Blog on February 26, 2011 (boomark / email).