A February release from the American Farm Bureau Federation revealed staggering statistics on the rising number of Chapter 12 bankruptcies. This type of bankruptcy allows farmers to continue farming while restructuring debt. In 2025, there were 315 Chapter 12 bankruptcy filings across the U.S., a 46% increase from 2024.
Of those, Arkansas ranked highest with 33 Chapter 12 filings, up 17 compared with 2024. Second in line was Georgia with 27 filings in 2025, up 16.
The statistics sent shockwaves through the ag community and provided a concrete reality of the economic crisis. In Arkansas, farmers appeared in local media outlets with a message they’ve strongly voiced the past few years: The ag industry is in turmoil…