Bankruptcies are caused by a combination of factors that can include declining prices, production problems, marketing problems, and high debt levels. Loss of off farm employment can also be a contributing factor for some farms. Attibuting a bankruptcy to one factor would not be accurate. Further, most agri-food businesses such as restaurants and grocery stores would not be dramatically affected by swings in the price of farm commodities and it would be inappropriate to include them with farm bankruptcies. The total number of farm bankruptcies from the beginning of the 1996-97 crop year to the end of 1998 was 596. From January 1, 1996 to the end of 1998, there were 762 farm bankruptcies. This represents the lowest three year average of farm bankruptcies for the last two decades. In the 1980s the three year average ranged from 1,013 to 1,547 and has been declining since 1992 when it reached 1,231.
Agriculture and Agri-Food Canada does not have a listing of the names of agri-food businesses and farms which have had to declare bankruptcy. Additional information on bankruptcies may be available from the Office of the Superintendent of Bankruptcy at phone number 613-941-1000.