Farm financial stress has deepened through 2025 and into 2026. Chapter 12 bankruptcy filings among U.S. farmers and ranchers have climbed sharply as rising production costs, shrinking receipts and mounting debt squeeze margins on both crop and livestock operations. Court records show that 315 Chapter 12 farm bankruptcies were filed nationwide in 2025, roughly a 46% increase nationwide from the prior year and the highest level since the spike during the pandemic.

The Midwest and Southeast have accounted for more than two-thirds of those filings, while Arkansas and Georgia also recorded large increases in filings. RFD News Markets Specialist Tony St. James notes that this rise reflects prolonged margin pressure, rising debt and limited financial flexibility across the country.

Through the new Farmer Bridge Assistance Program, the USDA says it remains on track to begin delivering aid to producers later this month. While that will bring much-needed relief, analysts note these payments will cover less than half of the losses in 2025, with many producers increasing their reliance on borrowed capital to help manage farm costs.

Read more commentary on the state of the ag economy from RFD News.