Arkansas Farm Bankruptcies on the Rise, Most in the Nation
Talk Business & Politics staff
Agriculture, Business, Finance, Latest News
Arkansas farmers are struggling with finances due to soaring fuel and fertilizer prices. The state led the nation in farm-related Chapter 12 bankruptcy filings during the third quarter of 2026, according to a report by the University of Arkansas Division of Agriculture (UADA).
Arkansas had 12 Chapter 12 filings in the third quarter, nearly doubling the six filings reported in Iowa, the next-highest state. So far this year, 32 agricultural operations in Arkansas have filed for Chapter 12 bankruptcy protection.
Fuel and fertilizer prices have increased significantly since President Donald Trump's decision to target Iran in March. Additionally, Trump's 2025 tariff policies led to higher prices for agricultural equipment and parts. Prior to March, diesel prices averaged between $3.58 and $3.62; by October, they averaged around $6.27, according to the U.S. Energy Information Administration.
These financial struggles follow a challenging 2025 for Arkansas' farm sector, with 33 Chapter 12 filings, more than doubling the previous year and the most of any state, according to the Arkansas Farm Bureau Federation.
Nationally, Chapter 12 bankruptcy filings are also on the rise. Federal court data cited in the UADA report shows 292 Chapter 12 cases filed in 2026 so far, a nearly 19% increase from the 246 filed during the first three quarters of 2025. In the third quarter alone, 91 Chapter 12 bankruptcy filings were recorded nationwide.