U.S. Farm Bankruptcies Jump 130% to 62 in April as 12-Quarter Downturn Deepens
Updated
Updated · Shaw Local News Network · Jun 28
U.S. Farm Bankruptcies Jump 130% to 62 in April as 12-Quarter Downturn Deepens
2 articles · Updated · Shaw Local News Network · Jun 28
Summary
62 farm bankruptcies were reported nationwide in April, up 130% from a year earlier and the highest monthly total since February 2020.
The surge reflects a prolonged price-cost squeeze: the farm economy is in its 12th straight quarter of downturn, with crop prices 11% to nearly 40% below recent highs while production expenses have climbed 34%, or $120 billion, since 2020.
USDA last month projected 2026 net farm income will fall another $1.2 billion, and near-record loan demand is increasingly being used to keep farms operating rather than fund expansion.
Illinois crop budgets show corn still losing $45 to $91 per acre even at projected prices of $4.50 a bushel, pushing farmers to cut fertilizer, switch to generic chemicals and delay equipment purchases.
Farmland values remain one of the few supports, helping preserve collateral and debt ratios, while farmers look to pending Senate action on the farm bill, year-round E15 and possible additional federal aid.
Farm bankruptcies are surging, yet land values remain strong. Is American agriculture facing a hidden collapse?
With a Mideast war disrupting fertilizer trade, can American farmers afford to plant for the upcoming harvest?
2026 Farm Bankruptcy Crisis: Rising Costs, Falling Incomes, and the Struggle for Survival in U.S. Agriculture
Overview
In 2026, U.S. farms are facing a surge in bankruptcies, highlighting a struggling agricultural economy and growing financial stress across rural America. Persistent financial pressures and rising costs are squeezing farmers, leading to a forecasted decline in net farm income both in nominal and inflation-adjusted terms. Farm cash receipts are also projected to fall, reflecting the broader challenges in the sector. These interconnected issues—higher expenses, lower income, and shrinking revenues—are fueling the current crisis, making it harder for farmers to stay afloat and threatening the stability of rural communities and the food system.