Chapter 12 Farm Bankruptcy and Ag Groups Applaud USMCA Hearing
From the Ag Information Network, I’m Bob Larson with your Agribusiness Update.
**In 2025, Chapter 12 bankruptcies increased for the second year in a row, reaching 315 filings, a 46% increase from 2024, according to analysis from American Farm Bureau, this after four years of declining receipts.
The Midwest filed 121 and Southeast 105 Chapter 12 cases in 2025, far outpacing other regions.
In Georgia, 27 farms filed for bankruptcy, up from 11 in 2024.
www.gfb.org/news/ag-news/post/farm-chapter-12-bankruptcies-in-2026-up-46-from-2024
**Farm Journal’s first Ag Economists’ Monthly Monitor of 2026 shows the U.S. ag economy entered the year in a clear crop-sector recession, and a deeper crisis of confidence.
Economists say the downturn is cyclical and manageable through optimization, but farmers are experiencing a structural stress test on their operations and livelihoods.
The Monthly Monitor asks respondents to compare the current ag economy with a year ago, and most report being somewhat worse off.
**Over 40 ag groups applauded the Senate Finance Committee for holding a hearing to highlight the importance of the U.S.-Mexico-Canada Agreement, emphasizing the need for renewal.
Coalition spokesman, Bryan Goodman says the hearing made clear that USMCA is vital to the U.S. economy and an economic engine for rural America.
The USMCA significantly increased ag exports to Canada and Mexico, provides more certainty and a way for resolving trade disputes.
