Farm bankruptcies rose 55% between 2023 and 2024 and show no sign of slowing in 2025. Farmers are squeezed by persistently low commodity prices and rising input costs, making it harder to stay afloat. According to Bloomberg, a mix of unpredictable tariffs, immigration policy shifts, cuts to federal programs, and frozen USDA funding is compounding the pressure, leaving many farmers without the support they need.
The Federal Reserve Bank of Chicago reports that 4.3% of its district’s farm loan portfolio had “major or severe” repayment issues in Q4 2024, the highest level since late 2020. The Kansas City Fed also noted a modest increase in farm loan delinquencies amid rising debt and a worsening farm economy.
Iowa currently leads the nation in 2025 with 12 reported farm bankruptcies, according to the American Farmland Owner.