Arkansas Farm Bankruptcies on the Rise, Most in the Nation
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Recent reports indicate a surge in Arkansas farmers facing financial difficulties due to the steep increases in fuel and fertilizer prices. The state topped the nation in farm-related Chapter 12 bankruptcy filings during the third quarter of 2026.
Arkansas had 12 Chapter 12 filings in the third quarter, according to a report posted on October 22nd by the University of Arkansas Division of Agriculture (UADA). This number doubles 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, highlighting the financial strain on the state's agricultural sector.
Fuel and fertilizer prices have skyrocketed since President Donald Trump's March attack on Iran. Additionally, Trump's 2025 tariff policies led to significantly higher prices for agricultural equipment and parts. Diesel prices averaged between $3.58 and $3.62 prior to March, rising to around $6.27 by October, 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.
Chapter 12 bankruptcy filings are also on the rise nationwide. 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 bankruptcies were recorded across the nation.