
This week, the National Association of State Departments of Agriculture and the National Agricultural Law Center announced the launch of Data on Economic and Bankruptcy Trends in Agriculture (DEBT), a data project that aims to provide a more comprehensive view of bankruptcy trends across the agricultural sector. The project compiles agricultural bankruptcy filings under both Chapter 11 and Chapter 12.
“A goal of our memorandum of understanding with the National Agricultural Law Center was to expand collaboration to inform agricultural policy and education,” NASDA CEO Ted McKinney said. “The DEBT project accomplishes exactly that by providing better data and a more complete picture of the economic conditions U.S. farmers are facing.”
“DEBT is a first step in gaining a definitive, foundational picture of agricultural bankruptcy filings in the U.S. from 2021 onward,” NALC Director Harrison Pittman said. “We look forward to collaborating with NASDA and others partners and stakeholders in building on this foundation.”
Historically, farms filing bankruptcies have been tracked through Chapter 12 filings, which is specifically designed for family farmers and family fishermen with regular annual income. It provides eligible farms with a process for reorganizing debt while continuing to operate.
However, agricultural businesses might file under Chapter 11, a broad business reorganization chapter, when they do not qualify for Chapter 12 because of circumstances like off-farm incomes. Like Chapter 12, Chapter 11 allows the farm to continue operating while developing a plan to restructure and repay its debts.
This project examined bankruptcy filings from January 2021 through June 2026. To find farms that filed under Chapter 11 rather than Chapter 12, NASDA and NALC worked with long-time NASDA partner SAS, an advanced analytics company that turns data into usable information. Utilizing Public Access to Court Electronic Records (PACER), an online system allowing access to federal court files, case dockets and legal documents, SAS developed an automated process to cross-reference that information with publicly available data from the USDA Farm Service Agency. When an entity appeared in a bankruptcy filing and as a USDA Farm Service Agency program recipient, SAS used that as an indicator that the entity was an agricultural operation.
Of the 1,401 agricultural bankruptcy filings mapped, 201 were filed under Chapter 11. All 1,200 filings under Chapter 12 were counted, as a requirement to file for Chapter 12 protection is that the filing entity must be a farmer or fisherman.
Because not all farms participate in USDA Farm Service Agency, the Chapter 11 results may not capture every agricultural operation that filed under that chapter. However, by compiling agricultural bankruptcy filings across both chapters, the DEBT project provides a more comprehensive view of trends across the agricultural sector.
The data can help identify changes over time, geographic patterns and emerging financial challenges affecting agricultural operations. These filings can offer a clearer picture of the financial realities facing U.S. agriculture for attorneys, policymakers, researchers, lenders and others seeking to understand and respond to those challenges. Learn more about the project, methodology and findings at https://nationalaglawcenter.org/debtproject/.
The post NASDA and NALC roll out new data on agricultural bankruptcy first appeared on Oklahoma Farm Report.











