As we look ahead to another year of challenges in the farm economy, indicators of farm financial health are under close inspection. Filing for Chapter 12 bankruptcy is a last resort for farmers who have undertaken large debt to continue operating with increased flexibility for payments. AFBF Market Intel reports have long followed annual filings of Chapter 12 family farm bankruptcies, and this year’s uptick is another reminder of the strain American farmers and ranchers face.
The U.S. Courts report that 315 farm bankruptcies were filed in calendar year 2025, up 46% from 2024. While still down from recent highs, this is the second year in a row of increased filings. Chapter 12 also does not reflect larger trends in farm closures that may be the only option for certain struggling operations.