Arkansas has reported more Chapter 12 farm bankruptcies in 2026 than any other state, with 32 filings through the third quarter of the year, according to a recent analysis by the University of Arkansas Cooperative Extension Service.
Harrison Pittman, director of the National Agricultural Law Center, emphasized the seriousness of the situation affecting agricultural producers. “The number of Chapter 12 bankruptcies filed this quarter underscores the significant financial pressures facing U.S. agriculture,” Pittman said. He added that bankruptcy filings only reveal part of the broader challenges many in the farming industry are dealing with, as the full extent of financial distress often involves filings under other chapters of the bankruptcy code.
Chapter 12 bankruptcy provides family farmers with a structured process to reorganize debt while allowing them to continue operating. Unlike Chapter 11 cases, which are generally used by other types of businesses and have also risen in Arkansas this year, Chapter 12 is tailored for small-to-midsize farms.
This year’s trend follows a similar pattern from 2025, when Arkansas reported 33 Chapter 12 farm bankruptcies—the largest year-over-year increase in the nation—according to a March report from the Extension Service.
The data underscores the growing economic challenges facing the agricultural sector, particularly in Arkansas, a state where farming remains a critical part of its economy. Full details on the recent bankruptcy data can be viewed through the University of Arkansas Cooperative Extension Service.