The financial picture for American farmers took a hit in 2024. Net farm income dropped to its lowest point in four years, farmland values started to cool, and across much of the Midwest, the number of farm loans at serious risk of default climbed to the highest level since 2020.
Adding to the strain, bankruptcies among U.S. farmers rose 55% last year after a four-year decline — a drop in part driven by pandemic-related federal aid that kept many farms afloat during years of uncertainty. That aid, combined with historically low interest rates and a temporary surge in commodity prices, helped stabilize farm finances and delay the financial reckoning many producers now face.
A 2025 American Farm Bureau Federation Market Intel report warns that these conditions point to greater instability ahead. On top of that, the Trump administration’s tariffs have elevated tensions in global trade, making it even harder for farmers to plan ahead and adding to the uncertainty around prices and markets.
Chapter 12 bankruptcy, a specialized form of debt relief created in 1986, was designed to help farmers and ranchers restructure their finances when all other options had been exhausted.
While the number of bankruptcies filed in 2024 is still significantly lower — 64% less — than the peak of 599 filings in 2019, it marks the end of a four-year decline.
Every region of the country saw a rise in filings, with Virginia, Illinois, Montana, and Louisiana experiencing the sharpest spikes. California and Nebraska had the most filings.
Despite the increase, farmers overall are in a better position than before the pandemic, especially in states like Oklahoma and New Mexico, where bankruptcies have fallen to zero in 2024 – down from 13 and 32 in 2019, respectively.
Still, the more than doubling of bankruptcies nationwide is a cause for concern, especially in the current political climate.
The imposition of new tariffs, cuts to international aid programs that many farmers depend on, and the U.S. Department of Agriculture’s decision to freeze certain program funds have all contributed to an increasingly uncertain economic landscape for farmers.
Data Harvest (formerly Graphic of the Week) is Investigate Midwest’s way of making complex agricultural data easy to understand. Through engaging graphics, charts, and maps, we break down key trends to help readers quickly grasp the forces shaping farming, food systems, and rural communities. Want us to explore other data trends? Let us know here.
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