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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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.”