U.S. Farm Bankruptcies Jump Amid Diesel Price Surge


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Surging fuel cost has become one of the primary causes 
for U.S. farm bankruptcies, with surging diesel prices indicating no relief 
anytime soon for the agricultural sector.

   Chicago ultra-low sulfur diesel spot prices averaged $2.1253 gallon in 2025, 
according to DTN Energy data, but have risen to $2.9272 gallon as of April 27, 
with prices averaging $3.5737 gallon over the past 60 days, significantly 
increasing operating costs for Midwest farmers.

   Jump in energy expenses contributed to a 46% increase in total U.S. farm 
bankruptcies during 2025, according to a report by the American Farm Bureau 
Federation.

   Higher input costs and mounting debt have continued to pressure farm 
producers, with the Midwest seeing the most significant impact on Chapter 12 
filings, the report said.

   Weakening livestock margins and losses across key row crops further drove 
the year-over-year jump in Midwest bankruptcy cases.

   Rising input costs, particularly for diesel-reliant fuel and fertilizer, 
have left many producers increasingly reliant on credit to fund operations.

   Declining receipts across major commodities have compounded the financial 
strain as producers struggle to manage the price volatility.

   Total U.S. farm debt is expected to climb to a record $624.7 billion in 
2026, underscoring the growing pressure across the sector.




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