Chapter 12 bankruptcies have nearly doubled in the past year for southern farmers.
University of Arkansas economists report more than 100 filings since July 2024. That is nearly double the same time a year ago.
Arkansas saw the biggest jump, going from 4 to 25 cases.
Analysts say high input costs, tight margins, and debt burdens are hitting smaller operations hardest. Experts urge farmers to plan carefully and take advantage of support services, including the National Agristress Helpline.
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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.