The Social and Ecological Correlates of Bankruptcy During the Farm Fiscal Crisis, 1970-1987

Abstract

This article focuses upon the role of the fiscal crisis in the "agricultural transition." The thesis developed is that the fiscal crisis emerged in the late 1970's, and that it was followed by "rural immiseration" - a deteriorating social and economic condition for rural areas. Heffernan and Heffernan (1986) note that the individual suffering from farm stress continues to suffer stress after the loss of the farm. This is because the disengagement or "exit" from farming is far more complex than in prior years due to the structure of social and economic linkages to family, community, and government agencies. Communities suffer the misery of business closure. Families suffer from the effects of dislocation, a misery based upon the loss of friends, neighbors, and a valued way of life. Data to support this thesis are drawn from federal bankruptcy court records. The implications for the agrarian transition are discussed in the conclusion.