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Fast facts
- Arkansas continues to lead U.S. in bankruptcy filings
- Pittman: ‘The number of Chapter 12 bankruptcies filed this quarter underscores the significant financial pressures facing U.S. agriculture’
Arkansas led the nation in Chapter 12 bankruptcy filings in the third quarter of 2026, its 12 cases reflective of the difficult economic conditions in agriculture, according to data released by the federal courts.
“That number is twice the six filings reported in Iowa, the next-highest state,” said Harrison Pittman, director of the National Agricultural Law Center. “So far this year, 32 agricultural operations in Arkansas have filed for Chapter 12 bankruptcy protection, highlighting the financial challenges facing the state’s agricultural sector.”
Nationwide, Chapter 12 bankruptcy filings are also up significantly. According to federal court data, 292 Chapter 12 cases have been filed so far in 2026, nearly 19 percent more than the 246 filed during the first three quarters of 2025. In the third quarter alone, 91 Chapter 12 bankruptcy filings were recorded nationwide.
Chapters of the federal bankruptcy code each describe different processes to allow debtors to settle financial obligations. Chapter 12 of the federal Bankruptcy Code, introduced in 1986 at the height of the 1980s farm crisis, was designed with farms in mind. It’s an alternative to a Chapter 7 filing, under which a farm’s assets are liquidated to pay creditors…