“Widely known for its dairy lending, New Frontier Bank financed many large dairies, including Johnson's Dairy in Eaton, which had about $60 million in personal and business loans before it filed for bankruptcy last year. Diamond Dairy in Mead defaulted on a $6.2 million loan from the bank. It's (sic) reach into Texas and Florida were likely dairy loans, as well.
When the federal government shut down New Frontier Bank on April 10, more than $107 million in agriculture loans at New Frontier were from 30 days past due to non-accrual stage, when they were so far overdue they stopped accruing interest. Construction loans fared no better, with more than $317 million past due from 30 days to the non-accrual stage. Late commercial and industrial loans came in at $32.5 million.
The Federal Deposit Insurance Corp., through an Oklahoma financial agency, announced the sale of the agriculture loans this week, about 50 percent of which are non-performing. The loan mix of dairy, feedlots, farmland and livestock, contains 58 percent Colorado loans, 19 percent in Texas and 9 percent in Florida.”
A chapter 7 dairy bankruptcy in New Mexico has some interesting numbers. The total assets listed are $89,321.00. The liabilities are listed as $3,223,499.34. Of the liabilities, $ 2,856,271.00 in unsecured nonpriority claim is held by AG New Mexico ,Clovis, N.M. AG New Mexico is part of the Farm Credit system.
Banks who have loaned to dairy farms must be spending plenty of time seeking out therapist.