U.S. Farm Bankruptcies Increased 46% in 2025

The American Farm Bureau Federation’s Samantha Ayoub reported that “the U.S. Courts report that 315 farm bankruptcies were filed in calendar year 2025, up 46% from 2024. While still down from recent highs, this is the second year in a row of increased filings.”

“The most recent farm income forecast confirmed that the farm economy has faced extreme financial pressure, with little relief in sight. Significant losses are expected across crop sectors for another year, and many livestock sectors are also tightening margins,” Ayoub reported. “The Midwest and Southeast each filed 121 and 105 Chapter 12 cases, respectively, far outpacing any other regions. This is a 70% increase in filings for the Midwest, and a 69% increase in the Southeast.”

“Deep losses across commodities common in these two regions have compounded after years of declining receipts and rising expenses. For example, rice farmers are expected to lose over $200 per acre in loss, even after supplemental assistance. The nation’s leading rice producing state, Arkansas, leads the U.S. in Chapter 12 filings in 2025 with 33 filings, more than double 2024 and the most in the state in the 21st century,” Ayoub reported. “Georgia follows with 27 filings, up 145% from 2024, reflecting both losses per acre in principal row crops and limited support for high-cost specialty crop production. Other Southeast states with double-digit bankruptcies include Texas and Louisiana with 12 each, and Florida with a 200% increase from 2024 to 16 filings.”

“In the Midwest, principal row crop losses combined with weakening dairy, hog and poultry markets have led to double-digit Chapter 12 filings in Iowa (18, +220%), Nebraska (17, +29%), Missouri (16, +167%), Wisconsin (16, +700%), Minnesota (13, +300%) and Kansas (11, +10%),” Ayoub reported. “Other states with significant increases in filings in 2025 include Montana, with 200% more filings, and Pennsylvania with a 160% increase in filings. While California was unchanged from 2024, they tie for fourth-highest number of filings with 17 in 2025, reflecting continued price and cost pressures on their diverse agricultural industries.”