Farm bankruptcies are on the rise, and an ag attorney says proactive financial reviews are a critical risk management tool.
Austin Piefer, an associate attorney at Ag and Business Legal Strategies, says regularly reviewing balance sheets could help identify problems before it’s too late.
“If all you’re doing is updating your balance sheet at the end of the year, you’re operating in the dark for the year,” he says. “If you’re funding your farm by rolling debt onto land or equipment, you might not see year after year your farm is losing money.”
He tells Brownfield farm bankruptcies increased in the first two quarters of 2025 in Arkansas, Iowa, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota.
“There were 282 Chapter 12 bankruptcies filed,” he says. “The 8th circuit led the way with 83. If we go back to 2024, that overall total was 181. From what we’re seeing, I don’t think the numbers are going to be lower next year. I think they will be even higher.”
Peiffer says early financial planning and risk management could help farmers better prepare for the 2026 crop year.
