The Reckoning Has Started—Why Farm Bankruptcies Are Climbing Again in 2025

We’ve been warning about this for a while now.

And here we are.

Farm bankruptcies are climbing again in 2025. And if you're paying attention—really paying attention—you know this isn’t just a blip on the radar. This is the beginning of the reckoning that’s been building for the last five to ten years.

I said it in a recent video, and I’ll say it again here:

2025 and 2026 are going to be the years that expose everything.

For too long, operations have been floating by on equity. Pushing problems down the road. Getting refinanced one more time. Hoping prices will bounce back. Hoping interest rates will come down. Hoping someone else will solve it for them.

But hope is not a business strategy. And now, that road? It’s come to an end.

We’re Out of Room

According to data published in April by Farm Policy News, farm bankruptcies are back on the rise in 2025. No surprise there.

Net farm income fell another 4% in 2024, on top of a 20% drop the year before. Meanwhile, costs keep climbing. You’ve got seed, fuel, fertilizer, equipment—and then you've got interest. And that interest is what’s killing people right now.

The problem? The decisions being made over the last several years were based on emotion. Not math. Not facts. Not a clear financial system.

A lot of folks made moves because the neighbor was doing it. Or because the banker said it was a good idea. Or because it “felt like the right thing to do at the time.”

Now the equity’s gone, and the cash isn’t coming in fast enough to cover the burn rate.

This Isn’t Just a Commodity Price Problem

Don’t kid yourself. Commodity prices matter, yes. But this isn’t just about a few bad corn or bean years.

This is about the entire financial structure of the operation being broken.

It’s about the owner not knowing their numbers. Not knowing their break-even. Not having control over their debt service, their margins, or their inventory.

We talk with hundreds of farmers every single month, and I can tell you with 100% certainty:

Most operations don’t need more revenue—they need better financial systems.

Trade Tensions Are the Cherry on Top

And if all that wasn’t enough, let’s add trade tensions into the mix.

The Guardian just ran an article about how the proposed tariffs from the Trump campaign could devastate exports to China, Canada, and Mexico—some of our biggest ag buyers.

If those retaliatory tariffs come back into play? You’ll see even more pressure on prices. And more farms slipping into the red.

Here’s the Bottom Line

We’re in the early stages of the collapse.

And for the farmers who’ve been ignoring the numbers?

Who’ve been relying on the banker to tell them whether they’re doing okay?

Who’ve been too “busy” to build their financial foundation?

This next 18–24 months is going to be a very hard lesson.

But for those who are ready to face it—head on—and get control of their financials?

There’s still time.

If this hit home and you know you need help getting control of the numbers inside your operation, it’s time to stop flying blind.

Because you can’t afford another year of “I think we’re doing okay.”

It’s time to get the facts. Get a system. And protect your farm.