Farm bankruptcies are soaring year-over-year, according to the latest data from the U.S. Courts. Joe Peiffer, attorney with Ag & Business Legal Strategies in Iowa, says the numbers are alarming.

“The Administrative Office of the United States Courts points out, in the first six months of 2025, 181 chapter 12 bankruptcies were filed nationwide. That’s up 57% from what it was in 2024. That’s more filings than we had in either 2022 or 2023.”

Peiffer says the blame for the rise lies in President Trump’s tariff war and the resulting loss of ag markets.

“Now China’s buying soybeans from Argentina. It’s been buying soybeans from Brazil. Once you lose a market like that the chances of getting it back are really slim, because we’re no longer viewed as a reliable supplier because of the trade things that are going on.”

Not only the financial loss, but Peiffer says the emotional strain on farmers is immense. He notes the story of one of his clients.

“He’s scared. He’s afraid of all it’s gonna be like to tell his wife about it. He’s embarrassed because he brought in family on both sides to help keep the operation running. So he’s scared. He’s afraid of, what are people gonna think? Am I the failure that lost the family farm.”

Peiffer says it’s “fish or cut bait time” for a lot of farmers, and he recommends they talk to an experienced bankruptcy attorney and a tax advisor.