U.S. farmers have recently faced consecutive years of high input costs and low commodity prices, decreasing the already small margins that many operations get by on. And while these conditions alone are difficult enough to navigate, additional challenges have only increased uncertainty for U.S. farmers. Farmers have been hit from every direction: seesawing tariffs, damaging trade policies, inflation and drastic cuts to federal farm programs. These impacts combined with decades of agriculture policy that favors large-scale, industrial operations and corporations, are bringing many farmers, and the rural communities they support, to a breaking point.
After a tumultuous year, the outlook for 2026 does not offer much hope for improvement. Farm income is forecast to remain low; input costs continue to rise as tariffs remain a frequent tool of the Trump administration leading to lower agricultural exports and a tarnishing of the U.S.’s role as a trading partner; and now farmers and ranchers are facing yet another variable with the recent military action by the U.S. against Iran. The result? Global financial turmoil and additional increases in the cost of fertilizer and fuel, along with impacts to its availability—right as farmers plant their fields and prepare for the growing season
Last year, farmers, advocates and policymakers began to warn that we’re entering the next farm crisis, as farmers across the spectrum struggled to make a living. In the first quarter of 2026, we’re seeing this warning bear fruit, and there is no sign of these conditions easing. And in case you’re wondering (and probably already experiencing), these economic challenges don’t just add up for farmers, they hit all of us who eat in the price of our food.
Farm Crisis Updates
When it comes to the farm economy, there’s a lot to cover. Stay tuned to this post for updates as planting season continues and we get more clarity on how farmers are faring. We’ll bring you updates from economists, policymakers and the folks on the ground who experience these challenges directly: farmers.
Farm Bankruptcies Increased 46% in 2025
April 13, 2026
In February 2026, the American Farm Bureau Federation released a report that substantiated what many farmers and agriculture economists have been saying: We are experiencing a new farm crisis. The report found that Chapter 12 family farm bankruptcies surged by 46% in 2025 to 315 filings, marking the second consecutive year of increases.
High production costs, high interest rates, and declining commodity prices are driving this financial distress, particularly in the Midwest (which claimed more than a third of the bankruptcies and saw them rise by 70%) and the Southeast (where Arkansas had the greatest number of bankruptcies of any state and the largest year-over-year increase).
Chapter 12 is a form of debt restructuring specifically for farm businesses, which allows them to restructure debt and continue farming. Using Chapter 12 filings as a barometer of the farm economy is telling, but one danger is that it is a “lagging indicator.” Farm bankruptcy is a farmer’s last resort, with financially distressed farmers often first maxing out lines of credit, personal credit cards and their savings to keep the farm.
Additionally, using Chapter 12 as a measurement of the farm economy has become less useful as many farms have become reliant on off-farm jobs. Chapter 12 requires that the farm family earn the majority of their income from the farm—something that has become more difficult as farm income falls and because many farmers and/or their spouses rely on an off-farm job to access health insurance. According to USDA’s Economic Research Service, nearly half of all farmers reported having a job off the farm in 2022. Chapter 12 filings, therefore, do not provide a comprehensive look at farms that have ceased to operate or been consolidated into a bigger farm.
Nonetheless, seeing farm bankruptcies rise so substantially during 2025 clearly indicates that American agriculture is in trouble—no matter how forcefully the USDA claims that farmers are experiencing a “golden age.”
Watch “The Farm Crisis”
The Farm Crisis is a 2013 documentary from Iowa PBS that examines the tragic circumstances faced by farmers for most of the 1980s, when thousands were forced into bankruptcy, land values dropped by one-third nationally, and sky-high interest rates turned successes into failures seemingly overnight. Explore why the farm crisis of the 1980s happened, meet the farm families who struggled and the men and women who fought so long and so loyally to help them, and examine how agriculture changed as a result of the crisis.
Watch the film on IowaPBS.org or on YouTube.
