US Farm Chapter 12 Bankruptcies Surge Amid Rising Input Costs and Trade Turmoil

Chapter 12 farm bankruptcies have surged, rising 46% over the previous year and 55% from 2023, with April 2026 recording the highest monthly total in six years. Growers such as Andy Juris in southern Washington describe a perfect storm of rising input costs—fertilizer now $700-$800 per ton and diesel at $6 a gallon—combined with falling wheat prices and limited export opportunities. Analysts attribute the pressure to a prolonged war with Iran that has driven up oil prices and to trade disputes that have closed key markets for U.S. crops.

While some farmers manage by borrowing or selling land, many see their equity erode, prompting a wave of Chapter 12 filings. Advocacy coalition Restore American Agriculture has pressed Congress for tariff cuts and binding trade agreements, yet lawmakers have offered only bridge payments and a pending farm bill, with little prospect of action before the November midterms. The situation underscores broader volatility in U.S. agricultural earnings, which fell from $182 billion in 2022 to a projected 5.5% decline in 2026.