US Farm Bankruptcies Rise 46% as 150,000 Farms Close in Five Years
US farm bankruptcies rose 46% to 315 cases in 2025, continuing a troubling trend. Nearly 150,000 farms have closed in the last five years as operating costs climb and farm income drops.
American farmers are going out of business at an alarming rate. Farm bankruptcies jumped 46% in 2025, reaching 315 cases nationwide.
The crisis has been building for years. Since 2020, the US has lost nearly 150,000 farms - about 30,000 per year. Total farmland has shrunk by more than 21 million acres during this period.
Small farmers are getting hit the hardest. Rising costs for fuel, fertilizer, and equipment are squeezing profit margins. At the same time, what farmers earn from selling crops and livestock keeps falling.
Bankruptcy filings more than tripled in some regions in 2024, hitting five-year highs. The trend shows no signs of slowing as debt piles up and more farmers struggle to pay their bills.
Each farm closure ripples through rural America. When farms shut down, local businesses lose customers and small towns lose residents.
More farm closures mean higher food prices at grocery stores. When family farms go bankrupt, it reduces America's food supply and makes rural communities smaller and poorer.
More bankruptcies expected in 2026 as farm debt levels remain high and operating costs continue rising.
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