California Leads Nation in Rising Farm Bankruptcies

After four years of decline, farm bankruptcies in the U.S. are back on the rise. According to a report by Ching Lee for the California Farm Bureau, 216 farms filed for Chapter 12 bankruptcy last year—a 55% jump from 2023. California led the nation with 17 filings.

Fresno bankruptcy attorney Peter Fear says many of these cases are driven by prolonged financial pressures: lower prices for crops like tree nuts and winegrapes, rising input costs, and interest rates that have jumped from under 3% to nearly 9%. For almond grower Shawn Gill, that translated to a leap in monthly payments from $6,000 to $28,000—forcing the sale of a vineyard before filing for bankruptcy.

Fear adds that he’s seeing more filings from dairy and almond operations, and notes that bankruptcies are often a last resort after farmers have exhausted all other options.

Michael Naito, who grows almonds, pistachios, and grapes in Madera and Fresno counties, says more farmers are choosing to sell off land and leave the business altogether. He says stress, volatile markets, and water regulations have made it too risky—and too overwhelming—for many to continue.

For more: https://www.agalert.com/california-ag-news/archives/may-7-2025/bankruptcies-show-stress-in-farm-economy/