Arkansas is on pace to lead the nation in farm bankruptcies for a second consecutive year as financial difficulties continue to overwhelm agricultural operations.

According to the University of Arkansas Division of Agriculture, citing figures from the American Farm Bureau Federation, 32 Arkansas farms filed for Chapter 12 bankruptcy protection during the first three quarters of 2026. That number is just one shy of the 33 filings reported in all of 2025 and more than double the total reported in 2024. Chapter 12 bankruptcies allow family farmers to restructure their debts while continuing operations.

The financial strain showed no signs of abating in recent months. Arkansas reported 12 Chapter 12 filings during the third quarter of 2026, more than any other state, a Division of Agriculture report from October confirmed.

Joel Hargis, managing attorney in Jonesboro, remarked on the difficult choices faced by local farmers, comparing the current situation to the farm crisis of the 1980s that spurred Congress to create Chapter 12 bankruptcy laws.

“It’s heartbreaking, actually,” Hargis said. “I had men and women from their mid-20s to late-60s saying, ‘I’m out. I got to get out. I can’t do this anymore.’”

Hargis also pointed to larger systemic challenges affecting Arkansas farms, such as the expanding presence of corporate agriculture. “When you get into that corporate level, it’s all about the money,” he explained, noting the increased pressure small farms face in competing with large-scale operations.

Although federal support provides some relief, Hargis said delays in government payments often compound financial difficulties for farmers. He urged Congress to act quickly to provide meaningful and timely assistance to those in agriculture.

The sharp rise in bankruptcies underscores the fragility of the state’s agricultural sector, a cornerstone of Arkansas’s economy. With one quarter remaining in the year, it remains unclear whether new measures or market changes can help stave off another record-breaking year for farm bankruptcies in Arkansas.