The U.S. agricultural sector is facing renewed financial stress in 2025, as farm bankruptcies rise sharply, reflecting deepening economic pressures across the countryside — including among pork producers.
According to multiple reports, including recent data from Bloomberg Law, the University of Arkansas System Division of Agriculture, and the Federal Reserve Bank of Chicago, Chapter 12 farm bankruptcy filings jumped 55% in the past year compared to 2023 and are trending even higher in 2025.
Between April 1, 2024, and March 31, 2025, there were 259 Chapter 12 filings nationally, with the first quarter of 2025 alone seeing 88 filings — nearly double the 45 filings recorded during the same period in 2024.
“We’ve already surpassed last year’s first-quarter filings, and that’s a clear sign the financial pressures we saw in 2018 and 2019 are returning,” said Ryan Loy, extension economist with the University of Arkansas System Division of Agriculture.
Why Are Farms Struggling?
The rise in bankruptcies is driven by a mix of economic headwinds:
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Falling Commodity Prices: Prices have retreated to levels last seen in 2018–2019, squeezing farm revenues.
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High Input Costs: Seed, fertilizer, pest management, diesel, and labor costs remain stubbornly high, giving producers little room to cut expenses.
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Uncertain Trade & Policy Landscape: Ongoing tariff disputes, immigration shifts, cuts to federal ag programs, and frozen USDA funding have increased unpredictability for producers, including pork operations.
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Weather Challenges: Unfavorable weather patterns have added further strain, impacting yields and operational costs.
Ag Resource Management’s Ashley Arrington summed up the situation bluntly: “Last year, cash reserves were already depleted. Some farmers who should have addressed problems then kicked the can down the road — and now, many are too far upside down for lenders to help.”
Regional Spotlight: Arkansas and the Midwest
Arkansas has emerged as a hot spot, accounting for over 25% of Chapter 12 filings nationwide. Since December 2024, the state has seen more than 60 farm auctions, many resulting in asset liquidations under Chapter 7.
In the broader Midwest, the Federal Reserve Bank of Chicago reported weakening agricultural credit conditions in the first quarter of 2025. Repayment rates for non-real estate farm loans were at their lowest since early 2020, with nearly 40% of banks reporting lower repayment compared to a year earlier — and no banks reporting improvements.
Impact on the Pork Sector
For pork producers, the financial strain is hitting at a critical time:
🐖 Feed Costs: Even as commodity prices fall, feed remains one of the largest expenses, leaving little margin for relief.
🐖 Capital Spending Freeze: Many farmers are holding off on equipment purchases, with tractor sales down 13% year over year and combine sales down 48%.
🐖 Ripple Effects: Input suppliers, feed mills, veterinarians, processors, and local communities all feel the downstream impact when farms face financial trouble.
“If the farmers are hurting, those communities are going to hurt too,” Loy said.
Looking Back and Ahead
At the peak of the last farm financial crisis in 2019, the U.S. recorded 599 Chapter 12 filings. That number dropped to 276 by 2021 thanks to pandemic-related assistance and stronger commodity prices. But in 2024 and 2025, the trend has reversed, and experts warn the situation may worsen if current pressures persist.
Holding back on capital investments has been the No. 1 response so far, but experts warn that more structural solutions are needed — including better access to credit, risk management tools, and stronger safety nets.
What’s Next?
The road ahead will test the resilience of pork producers and all of U.S. agriculture. As policymakers debate trade, tariffs, immigration, and farm policy, the voices of those on the ground — including small and midsized family farms — will be critical.
For producers, staying financially agile, leaning into risk management strategies, and engaging with lenders early will be key to navigating the turbulence ahead.
Related Resources:
Stay with Swine Web for continuing coverage on farm financial health, pork sector impacts, and rural economic trends shaping the industry in 2025.
