Rising Financial Pressure Brings Back Pre-Pandemic Challenges
Farm bankruptcy filings are on the rise across the United States in 2025, signaling a troubling return to the high financial pressures the agricultural industry experienced before the COVID-19 pandemic. Ryan Loy, an extension economist with the University of Arkansas System Division of Agriculture, reports that 259 Chapter 12 bankruptcy filings occurred between April 1, 2024, and March 31, 2025.
—Lorrie Boyer reports for AgNet West:
Q1 2025 Bankruptcies Surpass Previous Year
Loy emphasizes that the number of filings during the first quarter of 2025 already surpasses those recorded during the same period in 2024. This early-year surge sets a concerning tone for the remainder of the year and suggests that economic strain in the ag sector is intensifying rather than easing.
Commodity Prices at 2018–2019 Levels
One of the primary drivers of this financial pressure is the significant drop in commodity prices, which have returned to the levels seen in 2018 and 2019. These lower prices are reducing farm income across a wide range of operations, leaving producers with tighter margins and fewer resources to stay afloat.
Input Costs and Weather Compounding the Issue
Farmers are also facing elevated input costs—particularly for essentials like seed, fertilizer, pest management tools, and diesel. These costs, combined with ongoing weather challenges, are making it increasingly difficult for growers to manage expenses and remain financially solvent.
As these economic pressures mount, the agriculture industry continues to navigate a complex web of financial risks, supply chain disruptions, and unpredictable weather—all of which contribute to the growing number of farm bankruptcies in 2025.