Anticipating the Side Effect of McMartin Farms Filing Chapter 7
McMartin Farms filed for bankruptcy in February. As one of the largest specialty farms in North Dakota, the filing raise concern on the effect of land value and market in the surrounding Red River area and the farming industries in general.
The farm filed the Chapter 7 petition in U.S. Bankruptcy Court in Fargo on Feb. 10 requesting voluntary bankruptcy. Prior to the filing, McMartin Farm, which also known as McM, is the largest producer of sugar beets with a huge plantation area of 39,000 acres in high value crops. That includes the 2,000 acres of sugar beets plantation and 4,200 acres of non-irrigated potatoes.
Ron McMartin, the President of McMartin Farms have not made any comment regarding the petition. However he had long planned to scale down his farm operation, West Fargo Pioneer reported. McMartin had no intention to exit the industry that he has been dealing for decades, but he just looked for the low investment opportunities to keep the farming business more sustainable.
The court has appointed the trustee to handle the case, Cheryl Bergian, a Fargo, N.D., attorney. She has prepared the necessary document for the bankruptcy process. However, the list of assets and liabilities of the company hasn't been issued to the court, the list is expected to be ready by March 10.
In regard to the bankruptcy filing, a legal expert in agriculture David Saxowsky, from North Dakota State University expects the liquidation does not have the chain effect. In an interview with AgWeek, he expect the people doesn't immediately react by retiring. It is because the purpose of bankruptcy is not to end the business, but according to him the bankruptcy is "the chance to shake off debt and get back on your feet."
However, the bankruptcy of the McMartin Farms is the surprise to everyone in the agricultural industry. Watch the report from AgWeek TV regarding the McM filed for bankruptcy below: