Farmers battle inflation in the United States.
American farmers are facing a challenging time right now due to high interest rates and a labor shortage. As a result of this, they are going bankrupt.
A study from the University of Arkansas found that over 250 farms have filed for Chapter 12 bankruptcy. Many of these farms filed for bankruptcy between April 2024 and March 2025. This shows that many farmers are struggling financially.
Ryan Loy, an economist at the University of Arkansas, talked about these bankruptcy filings. He said the number of bankruptcy filings is already higher than last year’s, and it is happening all over the country. He further explained that the same financial problems farmers faced in 2018 and 2019 are coming back.
In just the first three months of 2025, 88 farms went bankrupt. This is almost twice the number of farms that did the same last year. Experts are worried that family farms might not survive if this trend continues.
Farm Finances in Trouble
Economists are saying that many farmers are under serious money problems. They are likening the situation to being in a “financial pressure cooker.” The costs of essential supplies, such as seeds and fertilizers, are still relatively high. Additionally, interest rates have increased significantly.
Quinn Kendrick, the general counsel for Peoples Company, a company that deals with farmland, talked on this issue. He explained that in the past, farmers would borrow money at an interest rate of about 3% to 5%. Now, those same loans can have rates of 7% to 9%. This means farmers have to pay a lot more in interest.
When you add high supply costs to lower crop prices, you will see that farmers are not making enough money. At the end of the day, many of them have no choice but to file for Chapter 12 bankruptcy. This plan will help them keep their farms while they figure out how to pay their debt.
Back in 2019, there were 599 of these bankruptcy cases in the United States. This is the most the country has had in at least 10 years. However, in 2021, the number dropped to 276. Experts think this happened because farmers got financial help during the pandemic, and crop prices were better for a while.
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Younger Generations of Farmers Are Facing More Stress
A Missouri farmer, Blake Hurts, mentioned something on this topic in an interview with NewsNationLive. Hurts said that even though farm bankruptcies have increased, the overall number is still pretty low. He explained that although farmers manage their money in different ways, he is worried about younger farmers.
Younger farmers are just getting started, many of them had to borrow a lot of money to start farming, and now they are feeling stressed. He said the biggest concern right now is making sure the next generation of farmers can handle these challenges.
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Farmers Face Worker Shortages Amid ICE Raids
Farmers are having a hard time finding workers because of the new, strict immigration rules. Recently, Immigration and Customs Enforcement (ICE) has been doing more raids at workplaces. This action makes it more difficult for farmers to hire and retain workers.
President Donald Trump admitted that the ICE raids were hurting farmers, so he temporarily stopped ICE from carrying out workplace raids at farms, hotels, and restaurants. However, about a week later, that decision was reversed. So, farmers were left unsure about what would happen next.
Agriculture Secretary, Brooke Rollins, said she understands how tough things are. Many farmers are just breaking even or even losing money, which is not sustainable for farms that have been passed down for generations. She believes that, in the long run, the farmers will benefit from the changes the president is making, but right now it is very hard on them.