That\u2019s still well below the recent high of 169 in early 2020, and filings nosedived in the two years that followed. But since 2022, farm bankruptcies have been trending higher.<\/p>\n
That coincides with higher production costs and plunging crop prices<\/a>. For instance, corn prices have crashed about 50% since 2022, while soybean prices are down about 40%. <\/p>\n More recently, President Donald Trump\u2019s trade war this year has kept China, traditionally a top buyer of U.S. soybeans, from placing any orders with American farmers, who are facing an uncertain harvest season.<\/p>\n Federal Reserve Bank of Minneapolis<\/p>\n But crop prices have been weak for most of the past decade except for brief a spike during the pandemic, according to the Minneapolis Fed.<\/p>\n And while the Agriculture Department has forecast that farm incomes will increase this year, about three-quarters of that growth will come from an expected boost in government payments, it added.<\/p>\n The\u00a0Federal Reserve\u2019s recent survey<\/a>\u00a0of farm financial conditions found that weaker income has reduced liquidity for farmers, boosting demand for financing.<\/p>\n At the same time, credit conditions deteriorated with roughly 30% of respondents in the Chicago Fed and Kansas City Fed districts reporting lower repayment rates versus a year ago, while the Minneapolis Fed region\u2019s share was around 40% and the St. Louis Fed\u2019s was 50%.<\/p>\n To be sure, the recent spike in bankruptcies doesn\u2019t mean farmers are going out of business, the Minneapolis Fed pointed out. A Chapter 12 filing can help them avoid total liquidation and allow\u00a0them to continue operating, perhaps on a smaller scale after some restructuring.<\/p>\n Still, agriculture trade groups have been calling on the Trump administration for help in boosting demand for U.S. crops as they sound the alarm on a crisis in the farm economy.<\/p>\n That includes reaching a trade deal with China to start buying U.S. soybeans again and requiring fuel with higher blends of ethanol, which can be made from corn.<\/p>\n \u201cSoybean farmers are under extreme financial stress,\u201d\u00a0the American Soybean Association said in a letter<\/a>\u00a0to Trump in August. \u201cPrices continue to drop and at the same time our farmers are paying significantly more for inputs and equipment. U.S. soybean farmers cannot survive a prolonged trade dispute with our largest customer.\u201d<\/p>\n The One Big Beautiful Bill Act that was signed in July included about $66 billion in agriculture-focused spending. The vast majority, about $59 billion, is earmarked for farm safety-net enhancements.<\/p>\n But Trump has also suggested tariff revenue could be used to help farmers, and sources told the Wall Street Journal<\/a> on Thursday that the administration is considering a bailout of $10 billion-$14 billion with distributions potentially starting in the coming months. During Trump\u2019s first term, farmers got $23 billion amid an earlier trade war with China.<\/p>\n![\"\"](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/10\/farm-bankruptcies-100425-e1759596770903.png\"\/)
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