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| Best of NAMA 2026 |
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FARM BUREAU: BANKRUPTCIES CONTINUED TO CLIMB IN 2025
Feb. 10, 2026
By Samantha Avoub, Economist, American Farm Bureau Federation
Washington, DC -- As we look ahead to another year of challenges in the farm economy, indicators of farm financial health are under close inspection. Filing for Chapter 12 bankruptcy is a last resort for farmers who have undertaken large debt to continue operating with increased flexibility for payments. AFBF Market Intel reports have long followed annual filings of Chapter 12 family farm bankruptcies, and this year's uptick is another reminder of the strain American farmers and ranchers face.
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. Chapter 12 also does not reflect larger trends in farm closures that may be the only option for certain struggling operations.
Key Takeaways
Chapter 12 bankruptcies increased for the second year in a row, reaching 315 filings in 2025. This is a 46% increase from 2024.
The Midwest and Southeast filed 121 and 105 Chapter 12 cases, respectively, far outpacing any other regions. Deep crop losses across commodities common in these two regions have compounded after years of declining receipts and rising expenses.
Families must earn the majority of their income from farming to qualify for Chapter 12. As off-farm income becomes more important for family benefits and supporting farms during economic downturns, many family farms are not eligible for Chapter 12 bankruptcies and may have to close altogether when debt and operating expenses become too great.
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