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# Farm bankruptcies jumped 46% in 2025 as debt loads and costs rise
- URL: https://www.investigatemidwest.org/farm-bankruptcies-jumped-46-in-2025-as-debt-loads-and-costs-rise/
- Published: 2026-02-25T13:00:49.000Z
- Updated: 2026-09-23T18:12:37.000Z
- Description: Chapter 12 filings climbed to 315 in the US. That’s a third straight increase annually as higher production costs and expanding borrowing put new pressure on farmers in 2026.
- Author: Lauren Cross, Investigate Midwest
- Tags: Data Harvest, chapter 12, Chapter 12 farm bankruptcy, TP::Explainer, farm bankruptcies, #wp, #wp-post, #Import 2026-06-18 04:56

Chapter 12 farm bankruptcies rose 46% in 2025 — to 315 filings compared to 216 in 2024, marking the third year in a row that filings increased, according to the American Farm Bureau Federation.

The Midwest accounted for 121 filings, followed by the Southeast with 105, and together representing more than two-thirds of cases nationwide. Filings in both regions increased by roughly 70% compared with the previous year, based on the [AFBF’s analysis of U.S. courts data](https://www.fb.org/market-intel/farm-bankruptcies-continued-to-climb-in-2025?ref=investigatemidwest.org).

The increase comes at a time of expanded borrowing, too: Operating loan volumes rose sharply in 2025, and the average size of farm operating loan increased by 30% from the year before, [according to a survey conducted by the Federal Reserve Bank of Kansas City](https://www.kansascityfed.org/agriculture/agfinance-updates/larger-operating-loans-boost-farm-lending-activity-in-2025/?ref=investigatemidwest.org#:~:text=Operating%20loan%20volumes%20increased%20alongside,Chart%202%2C%20right%20panel%29.). The survey found that farmers took on more credit as production costs rose and cash on hand tightened.

The rise in filings follows a period of historically low farm bankruptcies. Chapter 12 bankruptcy rates in 2022 were the lowest recorded since 2004, according to the USDA’s Economic Research Service. As borrowing increased and costs remained elevated in subsequent years, the rebound in filings points to [growing pressure for producers heading into 2026](https://www.investigatemidwest.org/this-is-my-80s-as-trumps-tariffs-upend-trade-farmers-endure-instability/).