(AURN News) — Farm bankruptcies are rising again. According to U.S. Courts data, Chapter 12 bankruptcy filings — the protection designed specifically for family farmers — jumped 46% in 2025 to 315 cases, marking the second straight year of increases.
The hardest-hit areas were the Midwest and Southeast. Arkansas led the nation with 33 filings, more than double the previous year. Georgia saw a 145% spike. Wisconsin’s filings rose 800%, and Iowa increased 220%.
The U.S. Department of Agriculture projects total farm debt will hit a record $624.7 billion in 2026, up 5.2%. Operating loans are up nearly 40%, and the average loan is now 30% larger than last year.
Interest costs are expected to hit a record $33 billion. So when we talk about inflation and food crisis, the crisis starts in the soil.
Click play to listen to the report from AURN White House Correspondent Ebony McMorris. For more news, follow @E_N_McMorris & @aurnonline.
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