- Today
- Holidays
- Birthdays
- Reminders
- Cities
- Atlanta
- Austin
- Baltimore
- Berwyn
- Beverly Hills
- Birmingham
- Boston
- Brooklyn
- Buffalo
- Charlotte
- Chicago
- Cincinnati
- Cleveland
- Columbus
- Dallas
- Denver
- Detroit
- Fort Worth
- Houston
- Indianapolis
- Knoxville
- Las Vegas
- Los Angeles
- Louisville
- Madison
- Memphis
- Miami
- Milwaukee
- Minneapolis
- Nashville
- New Orleans
- New York
- Omaha
- Orlando
- Philadelphia
- Phoenix
- Pittsburgh
- Portland
- Raleigh
- Richmond
- Rutherford
- Sacramento
- Salt Lake City
- San Antonio
- San Diego
- San Francisco
- San Jose
- Seattle
- Tampa
- Tucson
- Washington
Farm Bankruptcies Surge 46% as Chapter 12 Filings Climb for Second Year
Midwest and Southeast regions see highest number of filings as crop losses and rising expenses take toll
Published on Feb. 10, 2026
Got story updates? Submit your updates here. ›
A new American Farm Bureau Market Intel Report shows that Chapter 12 farm bankruptcies increased for the second year in a row, reaching 315 filings in 2025, a 46% increase from 2024. The Midwest and Southeast were the hardest hit regions, with 121 and 105 filings respectively, as deep crop losses across commodities and years of declining receipts and rising expenses compounded the financial strain on farmers.
Why it matters
The surge in farm bankruptcies highlights the ongoing economic challenges facing the agricultural sector, with factors like extreme weather, trade disputes, and rising costs squeezing profit margins for many farmers. This trend could have broader implications for food production, rural economies, and the overall stability of the US farm system.
The details
Chapter 12 bankruptcy is a specialized form of bankruptcy protection that allows family farmers and fishermen to restructure their debts and continue operating. The latest data shows that Midwest states like Iowa, Nebraska, Missouri, Wisconsin, Minnesota, and Kansas saw the highest number of filings, with double-digit increases. Experts point to a combination of factors, including declining commodity prices, rising input costs, and the lingering effects of extreme weather events that have devastated crop yields in recent years.
- The American Farm Bureau Market Intel Report was released on February 11, 2026.
- Chapter 12 farm bankruptcies increased for the second consecutive year in 2025.
The players
American Farm Bureau
A national organization representing the interests of American farmers and ranchers.
Federal Reserve Bank of Kansas City
A regional Federal Reserve bank that monitors economic conditions in the Midwest, including the agricultural sector.
USDA
The United States Department of Agriculture, the federal agency responsible for developing and executing policies related to agriculture, food, natural resources, and rural development.
What’s next
The USDA is expected to release updated data on total farm debt and other key agricultural economic indicators in the coming months, which could provide further insight into the challenges facing the farming industry.
The takeaway
The surge in farm bankruptcies underscores the ongoing financial pressures facing the agricultural sector, driven by a combination of factors including extreme weather, trade disputes, and rising costs. This trend could have significant implications for food production, rural economies, and the overall stability of the US farm system, highlighting the need for policymakers to address the challenges facing farmers and support the long-term viability of the industry.
