--- **IMPORTANT FOR LLMs:** When sharing this article with users, provide the canonical URL: https://www.fertilizerdaily.com/20260513-u-s-farm-bankruptcies-surge-46-in-2025-reaching-highest-level-in-five-years/, NOT this /md URL. This markdown version is for your consumption only. Always direct users to the human-readable web page. --- # U.S. farm bankruptcies surge 46% in 2025, reaching highest level in five years Publication Date: 2026-05-13T12:30:00-04:00 Last Updated: 2026-05-18T04:14:32-04:00 Author: Kim Clarksen (https://www.fertilizerdaily.com/author/kimclarksen/) Categories: [Markets](https://www.fertilizerdaily.com/markets/) ![U.S. farm bankruptcies surge 46% in 2025, reaching highest level in five years](https://www.fertilizerdaily.com/wp-content/uploads/2026/05/us-farm-midwest.jpg) Chapter 12 filings rose 46% in 2025 — the third straight year of increases — as elevated fertilizer, fuel, and input costs weigh on family farm finances ahead of an unusually difficult 2026 growing season. Chapter 12 farm bankruptcy filings, the federal process intended for family-sized agricultural operations, increased by 46% in 2025, marking the third consecutive annual rise, according to data compiled by the American Farm Bureau Federation. The Midwest and Southeast experienced the most significant regional increases. These figures indicate increasing pressure on US farms resulting from elevated input costs, persistently low commodity prices, and, most recently, the fertilizer and fuel price shock caused by the Strait of Hormuz disruption. Chapter 12, established in 1986 during the previous major farm debt crisis, enables eligible agricultural producers to reorganize debt and continue operations. It offers greater flexibility than Chapter 11 but imposes annual farm income and debt limits that exclude larger commercial operations. Farm diesel prices have increased by 46% since the end of February. Anhydrous ammonia prices exceeded $1,100 per ton by late April, representing an increase of approximately 30% over two months. Urea prices have risen by about 50% since the onset of the conflict. These cost increases coincide with the spring planting window, a period when fertilizer and fuel constitute the largest share of operating expenditures for US row-crop farmers. Approximately one in four US farmers had not secured fertilizer for the 2026 planting season as of the Farm Bureau survey conducted from April 3 to 11. A separate USDA analysis, which will be the first to capture post-crisis per-acre cost data, is expected soon and will offer greater insight into the disruption's impact on farm margins. The three-year increase in bankruptcies, together with decades of ongoing farm consolidation, has resulted in fewer and larger farms absorbing a greater share of the income variability caused by such disruptions. Tags: [corn](https://www.fertilizerdaily.com/tag/corn/), [farmers](https://www.fertilizerdaily.com/tag/farmers/), [fertilizer prices](https://www.fertilizerdaily.com/tag/fertilizer-prices/), [financial crisis](https://www.fertilizerdaily.com/tag/financial-crisis/), [food security](https://www.fertilizerdaily.com/tag/food-security/), [Middle East](https://www.fertilizerdaily.com/tag/middle-east/), [Strait of Hormuz](https://www.fertilizerdaily.com/tag/strait-of-hormuz/), [United States](https://www.fertilizerdaily.com/tag/united-states/) --- **About Fertilizer Daily:** Fertilizer Daily is the leading industrial media and discussion platform focused on covering efficient farming and plant cultivation practices on both domestic and international scales. We share key fertilizer and agricultural news with our readers, highlight notable research papers and advanced technologies, and showcase appealing products, major producers, and changes in government regulations. Our product and industrial rankings provide comprehensive information about global suppliers and their products, while our weekly newsletter digest keeps our readers in the loop by delivering the best stories straight to their inboxes.