U.S. Farm Bankruptcies · 2016–2026 YTD

Farm bankruptcies are accelerating into 2026

April 2026 produced 62 Chapter 12 filings — up +130% from April 2025 and the highest monthly total since February 2020. That single month is running at roughly the quarterly pace that produced 315 filings across all of 2025.

The causes are well-documented: corn and soybean prices that have fallen 40% from 2022 peaks, input costs that remain elevated, operating-loan rates that doubled from 2021 levels, trade-policy disruption, and USDA program freezes that removed an expected liquidity buffer at the worst moment.

USDA's February 2026 release cut its 2025 net farm income estimate by $25 billion versus its September 2025 forecast. Farm-sector debt is forecast to reach a record $624.7B in 2026, with a record $33.0B in interest expense. Leading indicators — loan delinquencies, working-capital declines, rising loan size and maturity — all point toward continued increases.

The cycle · 2016–2025

U.S. Courts · AFBF Market Intel

Three phases over a decade: rising stress through 2019, federal-aid relief through 2023, and the renewed-stress phase that began in 2024. 2025 closed at 315 filings — half the 2019 peak, but the second consecutive ~50% annual increase.

The acceleration · monthly pace

Epiq AACER · May 2026

April 2026's 62 filings is 2.4× the 2025 monthly average and 5.4× the 2023 trough average. The acceleration happened during the rollout of the $12.0B Farmer Bridge Assistance program — relief that's arriving too small or too late to offset the underlying stress.

The geography · top states, 2024 vs 2025

AFBF · U.S. Courts

The renewed-stress phase has shifted the geography: Arkansas (rice / cotton / soybeans) and Georgia (cotton / peanuts / poultry) now lead the country, with the Corn Belt — Iowa, Wisconsin, Minnesota, Missouri — recording triple-digit percentage increases. Labels show 2025 count and YoY change.

The squeeze · income vs debt

USDA ERS · Feb 2026

Real (inflation-adjusted) net farm income peaked in 2022 and has fallen back toward pre-pandemic levels, while total farm-sector debt has climbed every year of the decade — to a forecast record $624.7B in 2026. That widening gap is the underlying driver behind both rising delinquencies and rising Chapter 12 filings.

62
April 2026 filings
+130% vs April 2025 — highest monthly total since Feb 2020
315
Full-year 2025
+46% YoY — second straight annual increase
$624.7B
2026 farm-sector debt forecast
Record nominal level — USDA ERS Feb 2026
$33.0B
2026 interest expense
Record — vs ~$20B long-term norm
$44.3B
2026 direct govt payments
+45% vs 2025 — ad-hoc & disaster aid
Arkansas
#1 state in 2025
33 filings, +106% YoY

Aid context

The Trump administration's $12.0B Farmer Bridge Assistance package was finalized in December 2025; USDA payments began February 28, 2026 at $44.36/acre for corn and $30.88/acre for soybeans, with enrollment closing April 17, 2026. AFBF's November 2025 study put accumulated farm-sector losses at more than $50B over the previous three crop years — the bridge payments cover a fraction of that gap.