New DEBT project tracks farm bankruptcies through Chapters 11 and 12
The National Association of State Departments of Agriculture (NASDA) and the National Agricultural Law Center (NALC) have launched a new project aimed at improving understanding of agricultural bankruptcy trends in the United States.
Called the Data on Economic and Bankruptcy Trends in Agriculture (DEBT) project; the initiative brings together information from both Chapter 11 and Chapter 12 bankruptcy filings. Traditionally, agricultural bankruptcies have largely been tracked through Chapter 12 cases, which are designed specifically for family farmers and fishermen.
“A goal of our memorandum of understanding with the National Agricultural Law Center was to expand collaboration to inform agricultural policy and education,” said NASDA CEO Ted McKinney. “The DEBT project accomplishes exactly that by providing better data and a more complete picture of the economic conditions U.S. farmers are facing.”
The new project expands that view by including Chapter 11 filings, which are often used by agricultural businesses that do not qualify for Chapter 12 protection. By combining both categories, the project offers a more complete picture of financial conditions across the agricultural sector.
Researchers examined bankruptcy filings from January 2021 through June 2026. The effort identified 1,401 agricultural bankruptcy filings during that period, including 1,200 Chapter 12 cases and 201 Chapter 11 cases.
To identify agricultural operations within Chapter 11 filings, the project used court records and publicly available information from USDA Farm Service Agency programs. Advanced data analysis helped match bankruptcy filings with agricultural businesses.
“DEBT is a first step in gaining a definitive, foundational picture of agricultural bankruptcy filings in the U.S. from 2021 onward,” said NALC Director Harrison Pittman. “We look forward to collaborating with NASDA and others partners and stakeholders in building on this foundation.”
Project leaders say the information can help policymakers, researchers, lenders, attorneys, and agricultural organizations better understand the economic challenges affecting farmers and ranchers.
The DEBT project also provides insights into changes over time, regional patterns, and emerging financial pressures within agriculture. While some agricultural businesses may not be captured in the data, the project offers one of the most comprehensive looks at farm-related bankruptcies available today.
The new resource is expected to support future research, policy discussions and educational efforts focused on improving the long-term financial health of U.S. agriculture.
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