Mark Eugene Johnson, 1-17-11448

Debtor Mark E. Johnson (farmer) filed Chapter 12 on April 25, 2017; proposed three-tier 60‑month plan totaling $683,400 and multiple amended plans; confirmation hearing held December 14, 2017. Case dismissed by memorandum decision with 14‑day stay to convert.
Debtor is sole member/operator of Springbrook Grain Farms, LLC; Debtor moved for substantive consolidation with the LLC (separate order to follow).
Plan proposes large immediate payments: $40,000 to Cooperative Finance at confirmation plus cure amounts on two equipment leases totaling $67,155.70, and monthly trustee/direct payments to creditors (notably Hiawatha) that create heavy annual payment obligations.
Debtor relied on historic tax returns (2012–2015) and optimistic projections for 2018–2020 (gross > $599,000/year) to support feasibility; Court found the projections unsupported, unrealistic, and not credible given historic losses and loss of crop‑insurance eligibility (due to a fraud conviction).
Hiawatha National Bank objected to confirmation, arguing (among other things) the Plan’s proposed 5.5% interest on its secured claims is insufficient under Till v. SCS Credit Corp. The Court evaluated feasibility and appropriate cramdown interest.

Issue	Debtor's Argument	Hiawatha's Argument	Held
Feasibility of Plan	Projections (2018–2020) show sufficient income to make Plan payments and immediate payments/cures can be made	Projections are unsupported; Debtor’s historic returns show losses and lack of reserves; loss of crop insurance increases risk	Plan not feasible — Debtor failed to meet burden of proof; projections are speculative and lack contingency for crop loss
Immediate cash requirements at confirmation	Funds available to pay $40,000 and cure lease defaults (testified vaguely)	Proofs of claim show lease cure amounts and immediate payments are required; no credible evidence of ability to pay cures	Court finds insufficient evidence Debtor can make immediate $107,155.70 required; contributes to infeasibility
Appropriate interest rate for Hiawatha under §1225 cramdown	Proposes 5.5% (prime + 1%) across extended amortizations	Bank argues higher rate and shorter fixed‑rate terms are required given risk and market; small bank wouldn’t fix rate long‑term	5.5% is inadequate under Till; Court requires a higher ‘‘prime plus’’ rate given elevated risks and extended amortizations
Whether case should be dismissed	Debtor continues to amend plans and seek confirmation	Creditors and Court argue no realistic prospect of a confirmable plan; continued administration wastes estate resources	Court dismisses the Chapter 12 case (14‑day stay to convert), finding no reasonable prospect a confirmable plan can be proposed

Till v. SCS Credit Corp., 541 U.S. 465 (court applies prime‑plus test to cramdown interest)
In re Fowler, 903 F.2d 694 (9th Cir.) (agricultural bankruptcy heightened risk affects cramdown treatment)
United States v. Doud, 869 F.2d 1144 (8th Cir.) (agricultural operations involve elevated risk in reorganization)
Wells Fargo Bank N.A. v. Tex. Grand Prairie Hotel Realty, L.L.C., 710 F.3d 324 (5th Cir.) (discussing appropriate Till risk adjustments)
In re Mosbrucker, 227 B.R. 434 (B.A.P. 8th Cir.) (lack of realistic prospect to confirm a plan can constitute cause for dismissal)
In re Brown, 82 F.3d 801 (8th Cir.) (bankruptcy court’s dismissal is within its discretion)
Keith's Tree Farms v. Grayson Nat. Bank, 535 B.R. 647 (W.D. Va.) (discussing dismissal under §305/§1212 contexts)
In re Coram Graphic Arts, 11 B.R. 641 (Bankr. E.D.N.Y.) (court may dismiss when interests of creditors and debtor better served by dismissal)