Michigan Farmers Face Bankruptcies, Other Financial Challenges

Feb 26, 2026

By Bauyrzhan Zhaxylykov

After several strong years, financial pressure is returning to Michigan farms.

Rising input costs and flat crop prices have tightened margins, which led nine Michigan farms to file for Chapter 12 bankruptcy protection in 2025.

“Bankruptcy occurs when a farm can’t meet its debt payments and owes more than its assets are worth,” said Bill Knudson, a Michigan State University professor of agricultural, food and resource economics.

“Farmers may negotiate with lenders or file Chapter 12 to create a plan to pay down debt over time,” Knudson said.

The trend reflects broader national pressures. Chapter 12 farm bankruptcies climbed for the second straight year, reaching 315 filings in 2025, a 46% increase from 2024, according to the American Farm Bureau Federation’s Market Intel report.

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Video: Evidence-Based PRRS Elimination Methods - Dr. Brent Pepin

In this episode of The Swine it Podcast Show, Dr. Brent Pepin, Director of Swine Health at the National Pork Board, explains how a systematic review of porcine reproductive and respiratory syndrome virus elimination methods is helping shape future herd health strategies. He discusses evidence-based farm and regional approaches, research gaps, and practical guidance to support informed decision-making across the swine industry. Listen now on all major platforms!

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"Disease status sharing gives producers the opportunity to make real-time decisions that reduce PRRS prevalence and protect regions from new exposure."

Meet the guest: Dr. Brent Pepin / brent-pepin-dvm-ms-7988066b is Director of Swine Health at the National Pork Board. After earning his DVM and M.S. from Iowa State University, he built extensive experience in swine veterinary practice, research, and herd health management. His current work focuses on disease control, traceability, and improving herd health across the U.S. swine industry. Listen to Brent Pepin on The Swine it Podcast Show, available on all major platforms.