Arkansas leads U.S. in Chapter 12 farm bankruptcy filings

Arkansas recorded the highest number of Chapter 12 farm bankruptcy filings in the United States during the third quarter of 2026, with 12 cases reported. This figure is double the amount filed in Iowa, which had the next highest number of filings at six.

So far in 2026, 32 agricultural operations in Arkansas have filed for Chapter 12 protection. Nationally, Chapter 12 filings have increased significantly, with 292 cases recorded through the third quarter of 2026, representing a nearly 19 percent increase compared to the 246 cases filed during the same period in 2025.

Economic factors contributing to these financial pressures include rising fuel and fertilizer prices, as well as increased costs for agricultural equipment and parts driven by tariff policies. Chapter 12 bankruptcy is a specific process designed for family farmers to settle financial obligations without the immediate liquidation of assets required under Chapter 7.