Farms across the country are filing for bankruptcy at the highest rate since 2021. 

New research from the University of Arkansas System Division of Agriculture found 259 farms nationwide filed for bankruptcy in the first three months of the year, more than all the farms in 2024.

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Farms are filing for bankruptcy under Chapter 12 of the federal bankruptcy code, which gives farmers and fishermen a chance to restructure their operations and a plan to repay all or part of their debts. 

The study found that in 2019, there were 599 Chapter 12 filings, the highest number in that decade. In 2021, that figure dropped to 276 due partly to pandemic-related assistance and stronger commodity prices. 

“We’ve already beat last year in terms of national filings,” University of Arkansas System Division of Agriculture economist Ryan Loy said. “Once you see this on a national level, it’s a clear sign that financial pressures that we saw before in … 2018 and ‘19 are kind of re-emerging.”

The report concluded that bankruptcy filings were up because “commodity prices are back at levels where they were in the 2018-2019 era,” as input costs for farming, such as seed, fertilizer, pest management tools, and diesel, are also up. 

The Farm Bill is also long overdue, with the House and Senate extending the 2018 version multiple times and continuing it through 2025. Lawmakers on both sides of the aisle have expressed frustration over being unable to secure a new bill.

The Farm Bill typically received bipartisan support. It combines resources for such programs as the Supplemental Nutrition Assistance Program with updates to farm supports, including commodity price guarantees and crop insurance. 

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“If the farmers are hurting, those communities are going to hurt too,” Loy said.

The Department of Agriculture did not respond to the Washington Examiner’s request for comment.