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Farm bankruptcies hit a six-year high as ag economy continues to weaken

Farm bankruptcies hit a six-year high in April, and an ag attorney says it’s a sign of growing financial stress. 

Austin Peiffer with Ag and Business Legal Strategies says the farm economy continues to decline.

“We have a war in Iran that’s affecting oil and fertilizer prices,” he says. “We still have weak commodity prices, and we don’t have a full-fledged farm bill, so I don’t expect any great improvements in the near future.”

During the month of April, sixty-two Chapter 12 bankruptcies were filed, which is a 130 percent jump from April 2025 and the highest monthly total since February 2020.

Peiffer tells Brownfield regular budget reviews could help farmers avoid loan defaults.

“With your balance sheet and your income statement, you can use them to see trouble on the horizon,” he says. “Those tools will help you figure out where you’ve been, where you are, and then hopefully where you want to go.”

Peiffer says early decision making could strengthen producers’ financial position heading into this fall. 

AUDIO: Austin Peiffer, Ag and Business Legal Strategies