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About The daily Astorian. (Astoria, Or.) 1961-current | View Entire Issue (June 9, 2020)
B4 THE ASTORIAN • TUESDAY, JUNE 9, 2020 Farms get a second chance through bankruptcy By MATTHEW WEAVER Capital Press MABTON, Wash. — The Mensonides family designed its dairy with “cow fl ow” in mind. Cows enter the milking barn in one direction and exit a different way. Free stalls are 3 feet longer, giving the cows easier access to feed and exercise. “Easier cow fl ow is less stress for the cow, and less stress for the cow equals more milk for the dairy farmer,” said Kris- tyn Mensonides. But at this dairy, it’s the farmers who are under stress. The Mensonides family is among a growing number of family farmers who have sought protection under federal bank- ruptcy laws as the agricultural economy falters. In general, the laws allow them to prevent lenders and others from foreclosing on land or equipment while they develop a plan to repay their debts. In many cases, farms emerge on stable fi nancial footing, experts say. Art and Theresa Mensonides own the Mabton, Washington , dairy. Their daugh- ter, Kristyn, manages accounts, and another daughter, Amy, works in the offi ce. Three other daughters are not affi liated with the dairy. The Mensonides family has 11,500 cows and milks about 5,200 of them. They raise corn, triticale and hay for feed on 650 acres. They employ 70 people. The dairy fi led for Chapter 11 bank- ruptcy protection in June 2018. The Men- sonides family cited the years long drop in milk prices and a loan for 70,000 tons of corn silage that wound up being unus- able as feed. Their bankruptcy plan, under which they reorganized their fi nances, was approved in August 2019. Bankruptcy protection doesn’t mean the end. The dairy continues to operate. “We’re still working hard, day and night, 24/7 , 365 days a year,” Theresa said. Their repayment plan was originally going to last 15 years, but it could be extended because of the effects of COVID- 19 on the industry. This spring demand from restaurants for milk has evaporated, causing prices in some areas to drop into single digits per hundredweight, far below the cost of production. Under the plan, the Mensonides family must meet certain criteria each month. It’s the fi rst time the family has fi led for bankruptcy protection. “We’ve had tough times, but we always could work it out,” Art Mensonides said. It’s not an easy situation for the family. They get frustrated by delays in the pro- cess. Conversations with the bank are now done entirely through attorneys, which adds to the cost. But they stick together. Matthew Weaver/Capital Press The Mensonides family at their dairy farm in Mabton. “Keep hoping, keep praying, and keep your faith,” Theresa Mensonides said. “Lord willing, we’ll get out. He has a plan for us.” “I stick to the cows,” Art Mensonides said. “You have to. I cannot stick my head in the ground. There’s always a way, and there’s always a hope.” That hope, however, varies from moment to moment, Kristyn Mensonides said. “When you have a good day, it erases all the bad days, and then you have a bad day, and it just erases all the good days,” she said. ‘Heartbreaking and alarming’ A survey of court documents by the Cap- ital Press found that during the fi rst quar- ter of 2020, 170 U.S. family farms fi led for Chapter 12 bankruptcy protection, a part of the law designed specifi cally for family farmers. That’s up from 130 for the same period in 2019. Across the country, 595 family farm- ers sought Chapter 12 protection in 2019, a 46% increase from 407 in 2015. An American Farm Bureau Federation Market Intel report showed a total of 627 Chapter 12 fi lings during the 12-month period ending in March , marking fi ve con- secutive years of increases. The incidence of bankruptcies is low, approximately 3 per 10,000 farms, but the trend is concerning, according to the Farm Bureau’s national president, Zippy Duvall. “Each bankruptcy represents a farm in America struggling to survive or going under, which is both heartbreaking and alarming,” Duvall said in a press release. “Even more concerning, the diffi culty stay- ing afl oat is made worse by the pandemic and related shutdowns as farmers are left with fewer markets for their products and lower prices for the products they do sell.” The tumultuous trade picture was only made more concerning when the corona- virus shutdowns came along, experts say. Most U.S. farmers depend heavily on trade with Asia and other parts of the world. “Without doubt fi nancial stress is increasing and a concern but the key factor is we need to recover fully our international trade,” said Shannon Neibergs, a Washington State University Extension economist. “And move forward with economic recovery.” Reach out to a farmer As she drives around her family’s dairy, Kristyn Mensonides has advice for friends and loved ones of farmers who have fi led for bankruptcy protection: It’s OK to talk about it. “Just don’t be afraid to reach out to them and ask them how they’re doing,” she said. “Sometimes asking how they’re doing and checking in on them every now and then, it goes a long ways.” The dairy will continue, the Mensonides family members say. Art Mensonides says he would work with a different bank when the economy allows, adding that right now it’s hard for anyone to fi nd a lender. He advises farmers to be careful and use their head. “It’s not an easy situation,” Kristyn Mensonides said. “You have to be emotion- ally strong and be able to endure that kind of stress.” “If you cannot do that, then don’t go into bankruptcy,” Art Mensonides said. Mateusz Perkowski contributed to this report. CL ASSIF IE D M ARK ETPL A CE P lace classified ad s o n lin e at w w w .d ailyasto rian .co m o r call503-325-3211 201 Antique & Classic Vehicles 481 Freebies 651 Help Wanted Large lawn swing with cushions. You haul & you assemble. (503) 325-4959 604 Apartments 1966 Airstream International 28 foot, original. $1500/OBO. Call Philip 503-440-8118. 216 Vans 1991 Fleetwood Prowler 24C Clean inside, everything works except refrigerator. $2,750 in Knappa, OR Bryan 503-944-9167 Sell your children’s outgrown clothes and toys with a classified ad in The Astorian. Call 503-325-3211 to place your ad today! 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