Farms Facing Bankruptcy
Comment of The Bankruptcy Law Firm, PC, by KPMarch, Esq: Most people in urban areas in California are not aware that there is a huge amount of farming in California. In fact, the US Department of Agriculture reports that the state of California has the highest gross receipts from agriculture of any of the 50 states. As a result, stress on farming can have a big negative effect, not just on California farmers, but on the whole state of California.
See the following March 4, 2026 Report of Caroline Weier KAALTV, KSTP KSTP, that between 2024 and 2025, 1,300 farms were lost in Minnesota, as bankruptcies impact farmers across the country: A trend of rising bankruptcies continues to affect farmers across the United States, with farms nationwide seeing a significant decline:
As reported by KAAL-TV, farmers in rural Minnesota are expressing concerns that they are being stretched too thin.
New data from the USDA shows Minnesota lost 1,300 farms between 2024 and 2025, with farmers attributing the shutdowns to years of mounting pressure rather than a single bad season.
Nationwide, USDA data shows bankruptcy reports increased by 46% in 2025. Farmers said they were often selling at a loss.
The growing concern has some farmers advocating for federal-level changes.
“Most farmers, we don’t want to farm like this. This isn’t how we want to farm,” said Darin Johnson, the president of the Minnesota Soybean Growers Association. “Unfortunately, our breakeven price is higher than what we’re able to sell for. So we are selling in most cases at a loss.”
Some assistance is already available for farms facing bankruptcy.
The USDA introduced an $11 billion Farmer Bridge Assistance Program to help farmers until benefits from the “One Big Beautiful Bill” began this fall.
“It’s helpful. You know, it’s the difference between breaking even and losing money in many cases,” said Rob Tate, a board member for the Minnesota Corn Growers Association.
Still, it may not be enough to sustain farms in the long term.
Some farmers have argued that stronger domestic demand and reliable markets beyond exports were needed to ensure the next generation could continue farming.
“This is some of the space that we do get stuck in. And these are the ebbs and flows that do happen in the ag economy at times and just know that there is better times to come,” said Johnson.