Farm bankruptcies climbed by 55 percent in 2024 compared to 2023, according to a new report from Bloomberg Law. That same report says farm bankruptcies are trending even higher in 2025, with 82 bankruptcy filings filed over the first three months of 2025, which nearly doubles the figure for the same period a year ago.
The report points to the current stage of the farm economy, as farmers continue to struggle with low commodity prices and the high costs of inputs needed to produce those crops and livestock. The report also says a number of recent policies, including the recent trade war with China, immigration overhauls, federal programs being cut, and frozen USDA funding are among the factors that are causing increased pressure on the ag economy.
The Federal Reserve Bank in Chicago says the share of the district’s farm loan portfolio assessed as having “major or severe” repayment problems was 4.3 percent in the fourth quarter of 2024, the highest point it reached since late in 2020. The Kansas City Fed said at the end of March that as farm debt grew and conditions in the farm economy deteriorated, delinquency rates increased modestly from historic lows.
The American Farmland Owner says Iowa leads all other states with 12 bankruptcies this year.
Sources: Bloomberg Law, NAFB News Service
