Bankruptcy
For communities that depend on agriculture as their primary economic engine, the recession is not defined by headlines on Wall Street. It is defined by the quiet disappearance of the businesses that once processed, serviced, and supported the crop.
Cash flow management and lender communication are becoming critical survival tools for farmers as tightening margins increase risk and borrowing pressure.
AFBF Economist Samantha Ayoub discusses the latest data on Chapter 12 farm bankruptcy filings and what the troubling trend signals for the farm economy. At the same time, bigger loans and higher rates are squeezing working capital and increasing financial risk.
Bankruptcy filings reflect prolonged margin pressure, rising debt, and limited financial flexibility across farm country. Bigger operating loans are helping farms manage costs, but they also signal growing reliance on borrowed capital.
Reducing mental stress and focusing on controllable actions can improve decision-making in high-pressure environments, according to Hollywood actor and former Calif Gov. Arnold Schwarzenegger.
As the new year begins, both farmers and rural families are taking stock of their finances and planning ahead for 2026.
Credit stress is building for row-crop farms despite steady land values and slight price improvements.
Farmers with unpaid Hansen-Mueller grain should verify delivery records immediately and file indemnity claims quickly, as coverage rules differ sharply by state.
As economic pressures continue to squeeze agriculture, ag lenders are signaling a more cautious outlook for farm profitability heading into next year, particularly among grain producers facing lower commodity prices and higher operating costs.
The government reopens after 43 days. USDA resumes key reports, weighs farm aid, and watches China’s next move on U.S. soybean purchases.
For rural borrowers, freeing up community-bank balance sheets could mean steadier home loans, operating lines, and ag real-estate financing as winter planning ramps up.
AFBF Associate Economist Samantha Ayoub joins us to dive into H-2A visa program changes and what can be done to ease the pressure on producers.
RFD-TV Farm Legal and Tax Expert Roger McEowen with the Washburn School of Law dives into a “potpourri” of ag tax and law-related issues in his latest Firm to Farm blog post.
Treat financial stress as a health risk—know the warning signs, normalize conversations, and connect farm families to local and national support early.
Farm debt is climbing to record levels at ag banks, reflecting pressure on crop producers’ finances even as livestock and land values lend stability to the sector.
“In the first six months of 2025, 181 Chapter 12 bankruptcies were filed nationwide.”
Demand for farm loans surged in the first quarter of the year, topping the previous record set in 2016.
What is “gross income from farming” for purposes of Chapter 12 (farm) bankruptcy – that is the topic of today’s Firm to Farm blog post by Roger McEowen.
Today’s blog post by RFD-TV Agri-Legal Expert Roger McEowen takes a look at the “preferential payment rule,” a unique bankruptcy provision that can come as a suprise to farmers in financial distress.