Farm Health Concerns with Uptick in Bankruptcy Filings

Chapter 12 bankruptcy filings, a key indicator of farm financial health, surged by 55% from 2023 to 2024. According to the American Farm Bureau Federation, 216 such bankruptcies were recorded in 2024—a significant increase even though the total remains 64% lower than the high of 599 filings in 2019.

In the West, which includes California and Nevada, the trend was identical to the national, with 17 filings marking a 55% rise over the previous year. These figures suggest that many producers, facing declining revenues and rising costs, have exhausted other options.

As we kick off this year, the agricultural community is confronted with challenging financing decisions amid an ongoing squeeze on earnings and rising operational expenses. Complicating matters further, many are still awaiting the ad hoc economic and disaster aid promised under the American Relief Act of 2025 to help short-term operations.

Farm Bureau tells that they see this increase in filings as underscoring the need for updated policy support, a topic now central to the third year of farm bill negotiations.

For a detailed breakdown of the numbers, visit the American Farm Bureau’s market intel report at fb.org