(AURN News) — Farm bankruptcies are rising again. According to U.S. Courts data, Chapter 12 bankruptcy filings — the protection designed specifically for family farmers — jumped 46% in 2025 to 315 cases, marking the second straight year of increases.
The hardest-hit areas were the Midwest and Southeast. Arkansas led the nation with 33 filings, more than double the previous year. Georgia saw a 145% spike. Wisconsin’s filings rose 800%, and Iowa increased 220%.
The U.S. Department of Agriculture projects total farm debt will hit a record $624.7 billion in 2026, up 5.2%. Operating loans are up nearly 40%, and the average loan is now 30% larger than last year.
Interest costs are expected to hit a record $33 billion. So when we talk about inflation and food crisis, the crisis starts in the soil.
