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Credit conditions remain tight as farm bankruptcies continue to rise 

A new partnership with the National Association of State Departments of Agriculture and the National Agricultural Law Center could help provide a clearer picture of the financial challenges farmers are facing.

Logan Moss with NASDA says the Data on Economic and Bankruptcy Trends in Agriculture (DEBT) is tracking Chapter 11 and Chapter 12 bankruptcy filings over the last five years.

“We found about 18 percent more bankruptcies when incorporating the Chapter 11 data,” he says. “We’re seeing about 11 percent more bankruptcies this year when compared to that point in time last year. If we continue on this trend, there could be up to 22 percent increase in bankruptcy filings in 2026.”

Ty Kreitman with the Federal Reserve Bank of Kansas City says tighter farm margins are also impacting agricultural credit conditions.

“The share of lenders that had told us that loan repayment rates were lower than a year ago declined across almost all of the states in our district over the last year,” he says. “But, their borrowers are still having increased challenges with being able to repay loans.”

Moss says the additional data could help researchers better understand the larger financial pressures facing the ag industry.

AUDIO: Logan Moss, NASDA

AUDIO: Ty Kreitman, Federal Reserve Bank of Kansas City