A family farm that turned to raising crops after a long history in the dairy business has filed for protection from creditors under Chapter 12 of the federal bankruptcy code and looks to reorganize. The bankruptcy petition was filed at U.S. Bankruptcy Court for the Western District of Pennsylvania in downtown Pittsburgh.
In part, Kooser Farms LLC’s action ties to a prior bankruptcy in 2019, according to Daniel White, a partner at law firm Calaiaro Valencik who is representing the business. Kooser Farms, based in Mill Run, wound up selling its large herd of dairy cows and converting the business to a crop farm. That resulted in a different payment structure.
“They were getting a monthly milk check and that’s changed to a crop business with an annual yield and harvest, and the payments have to be structured around that larger annual payment rather than monthly,” White said. “Income from the crops was expected to be much better, but based on the weather we’ve had over the past few years, they’ve had a difficult time getting the yield anticipated.”
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