Farm bankruptcies are surging across the U.S. as high input costs, falling crop prices, and mounting trade tensions push more agricultural operations into financial distress.

According to Bloomberg Law, farm bankruptcy filings rose by 55% in 2024, with numbers expected to trend even higher this year. The report analyzed federal bankruptcy court data and found a steep increase in Chapter 12 filings, a type of bankruptcy specifically designed for farmers.

“In fact, I’ve got a Chapter 12 going right now,” said Don Swanson, a bankruptcy attorney with Koley Jessen in Omaha. “We’ve got a few more in the works, and every debtor has their own issues that are unique to them, but 2024 was a terrible year for farming.”

Many farmers are struggling to stay afloat amid soaring costs for fuel, fertilizer, and equipment, while commodity prices have failed to keep pace. Now, proposed tariffs on Chinese imports are creating additional uncertainty for U.S. agricultural exports.

“If all the proposed tariffs go through, that negative pressure is just going to intensify,” said Rabail Chandio, an agricultural economics professor at Iowa State University.

Chandio emphasized that the outlook could worsen depending on the duration of new tariffs on China and whether the federal government offers financial support. “It remains to be seen whether the Trump administration will provide relief payments, as it did during the last trade war,” she said.

Without aid or policy change, farmers may face another year of financial turmoil, and for some, bankruptcy may be the only way out.