Farm Bankruptcy Warning Signs: April Filings Jumped 130% Over Last Year. Here's the One Most Farmers Miss Until It's Too Late
On October 2, 2025, Kooser Farms LLC of Mill Run, Pennsylvania, filed for Chapter 12 bankruptcy. It was the farm's second Chapter 12 case in six years.
The farm had a long history in dairy. It sold its dairy herd during its first bankruptcy in 2019 and switched to crops. That meant trading a milk check that came every month for one big payment a year at harvest. Then the weather turned against them. As the farm's attorney, Daniel White, put it: "Income from the crops was expected to be much better."
Here is the warning sign most farmers miss. It is not a missed payment. It is not a letter from the bank. It is carryover debt: part of last year's operating loan quietly rolling into this year's, while your working capital shrinks. By the time a farm files for bankruptcy, that sign has often been flashing for more than one season.
The Short Answer: The earliest farm bankruptcy warning sign is shrinking working capital, and it shows up first as carryover debt. Carryover debt means you could not pay off last year's operating loan from last year's crop. Check two numbers today. First, working capital divided by gross farm revenue: university scorecards rate under 10% as vulnerable and over 30% as strong. Second, ask whether any of last year's operating note rolled into this year. If the answer is yes, act now, while you still have choices. |
In this article, we will look at what the 2026 bankruptcy numbers really say, and why they are the last thing to move. Then I will show you the one sign that moves first, the red flags that follow it, and a 10-minute self-check you can do at the kitchen table tonight.
Then we will talk about the way out: money that comes in before harvest. That is what visitors and direct sales can bring, and real farms have used it to climb out of holes deeper than yours.
What the 2026 farm bankruptcy numbers really say
Let's get the facts straight first, because the headlines have been loose with them.
In April 2026, 62 Chapter 12 bankruptcy cases were filed, according to Epiq AACER bankruptcy data. Chapter 12 is the bankruptcy chapter for family farmers (and fishermen). In April 2025, there were 27. That is a jump of 130% over the same month a year earlier. It was the highest single month since February 2020.
Compared with March 2026 (34 filings), April was up 82% in one month.
Then May dropped back to 29. So April was a spike, not a new normal. But the bigger trend has not gone away.
Federal court figures tell the fuller story. From January to September 2026, U.S. bankruptcy courts recorded 292 Chapter 12 cases. That is nearly 19% more than the 246 filed in the same nine months of 2025, according to the National Agricultural Law Center.
The July-to-September quarter is the one to watch. It had 91 filings, up from 65 a year earlier. Arkansas led the nation with 12. Iowa was next with six.
Quarter | 2025 | 2026 | Change |
Jan-Mar | 88 | 86 | -2% |
Apr-Jun | 93 | 115 | +24% |
Jul-Sep | 65 | 91 | +40% |
Oct-Dec | 69 | not yet published | - |
Full year | 315 | 292 (9 months) | - |
Source: U.S. Courts, Table F-2, three-month periods ending March 2025 to September 2026. The 2025 full-year total of 315 is from the American Farm Bureau Federation.
Here is the longer view. In 2025, Chapter 12 filings rose 46% to 315, the American Farm Bureau Federation reported. That was the second straight year of increases, after filings hit a low of 139 in 2023. The Midwest had 121 filings, up 70%. The Southeast had 105, up 69%.
To be fair, the numbers are still well below 2019, when 599 farms filed. But with 292 filings by the end of September, 2026 needs only 24 more in the last three months to pass 2025's total. The last three months of 2025 had 69.
Now the debt. You may have seen "a record $624.7 billion" in farm debt. That was the USDA's first forecast for 2026, made in February. In its September 3, 2026 update, the USDA Economic Research Service revised that forecast down to $605.1 billion, up 4.6% from 2025. That would still be a record in dollar terms (not adjusted for inflation), if the forecast holds. I covered what that record means in US Farm Debt Just Hit a Record $605 Billion.
If you want to know what the farms that avoided bankruptcy did differently, read what the survivors did before the bank called. This article has a different job. It is about seeing trouble coming early enough to do something about it.
Why bankruptcy numbers are the last thing to move
The American Farm Bureau Federation calls bankruptcy filings a lagging indicator. That is a polite way of saying they tell you about trouble that started years ago.
Three reasons why.
No. 1: Farmers fight hard before they file. Few farms file Chapter 12 after one bad year. Most borrow, cut back, sell a few cows, work off the farm, and hope next year is better. Harrison Pittman, director of the National Agricultural Law Center, said it plainly in October 2026: "We're three-plus years deep into a downturn."
No. 2: Many farms never file at all. They sell out instead. In Poinsett County, Arkansas, the Hall family had farmed for eleven generations. In November 2025, KAIT reported that the family's farm equipment had been sold and their fields had seen their last Hall harvest. Farms that sell out instead of filing don't show up in any bankruptcy count. The same report counted about 70 recent farm auctions in the Arkansas Delta.
No. 3: Many farms cannot file Chapter 12. To qualify, more than half your gross income must come from farming, at least half your debts must come from farming, and total debts must be no more than $12,562,250. Families who lean on off-farm jobs can fall outside the rules.
So when filings rise, the real damage is bigger than the number. And it started earlier.
The warning sign most farmers miss: carryover debt
Every farm runs on an operating loan. You borrow in spring for seed, feed, fuel and fertilizer. You sell the crop or the calves. You pay the note off. You start again.
Carryover debt is what happens when the crop money does not cover the note. The unpaid part does not disappear. It gets rolled into next year's loan. Next spring, you start the season already behind.
Here is why it is so dangerous. It does not feel like a crisis.
The lender is friendly. Land values are high, so your balance sheet still shows plenty of equity. You still got your operating line. Life goes on. But every dollar of carryover eats into your working capital, and working capital is what keeps a bad year from becoming a lost farm.
Purdue University economist Michael Langemeier put it best: "working capital represents a farm's first defense against financial stress."
The 2026 numbers on carryover debt
This is not a theory. Purdue's Ag Economy Barometer asked U.S. producers about their operating loans in early 2026.
About 21% said they expected larger operating loans this year. Of those, 31% said the reason was unpaid operating debt from prior years. That was "up sharply from the previous year," and well above the average of about 21% since the survey began asking in 2020. The authors' stress index, which multiplies the two numbers, hit 6.5, its highest reading in the series, above even 2020.
Lenders are seeing it too. In the Federal Reserve Bank of Chicago's August 2026 report on the second quarter, 27% of Midwest ag bankers reported more farm loan renewals and extensions than a year earlier. Only 3% reported fewer. No lender reported better repayment rates. The share of the district's farm loans with major or severe repayment problems hit 3.7%, the highest since 2020.
In August 2026, North Dakota State University Extension economist Frayne Olson warned that, in some cases, farmers have "one shot at refinancing." He said the problem is really about cash flow and debt structure.
The cushion has been shrinking for three years
Carryover debt is the symptom. The disease is a shrinking working capital cushion.
The USDA estimates U.S. farm working capital fell 15% in 2025. It forecasts a 3.5% rise in 2026. But in the same forecast, the USDA says other measures, like the debt service ratio, show liquidity getting worse in 2026.
On the farm level, the drop is sharper. Among Illinois grain farms keeping detailed records, median working capital fell from about $585,000 in 2022 to about $364,000 in 2024. That is a 38% drop in two years, according to University of Illinois economists.
Lenders call the speed of this drop the burn rate, Purdue economists wrote in 2015. When margins stay negative for more than a year or two, the burn rate climbs and brings "a dramatic increase in the vulnerability to financial stress."
That is exactly where many farms are now. If this feels familiar, you might also like Why Your Farm Is Making Money but You Still Have Nothing Left.
Reality Check: Strong land values can hide a weak farm. Equity and liquidity are not the same thing. You can be worth millions on paper and still not have the cash to buy seed. Lenders know this, which is why they look at working capital and repayment ability, not just your land. |
The red flags that follow carryover debt
Carryover debt rarely travels alone. Here are other early red flags to watch for, drawn from extension economists and lender surveys. If you see two or more, take it seriously.
No. 1: You can't buy seed until you plant. Langemeier calls this "a big red flag." You lose early-order discounts and pay more for the same inputs.
No. 2: You sell at harvest because bills are due, not because the price is right. Forced selling at the lowest price of the year makes next year's hole deeper.
No. 3: Family living is coming off the operating line. When the household budget is borrowed money, the farm is subsidizing the kitchen with debt.
No. 4: Your term debt coverage ratio is below 1.25. This measures whether your earnings can cover your scheduled loan payments. University scorecards rate under 1.25 as vulnerable. Under 1.0 means the farm cannot make its payments from its earnings at all.
No. 5: Short-term debt is being refinanced into land. Rolling operating debt into a mortgage buys time. It does not fix a cash-flow problem. In August 2026, DTN reported that some lenders are uncomfortable restructuring loans in consecutive years.
No. 6: You are selling breeding stock or machinery to make payments. That is selling the tools that make next year's income.
No. 7: You are avoiding your lender. Purdue economists noted that farmers under stress often wait too long to tell the lender there is a problem. The farmers with the most options are the ones who call first.
If cash timing is behind your red flags, read Farm Cash Flow Problems: Why You Pay for Months Before You Get Paid.
Your 10-minute farm money self-check
Grab your most recent balance sheet and income statement. If you don't have one, your lender almost certainly does. Ask for a copy.
Step 1: Work out your working capital.
Working capital = current assets minus current liabilities.
Current assets are cash, grain and livestock you plan to sell within a year, prepaid inputs and money owed to you. Current liabilities are what you owe in the next 12 months: your operating loan, accounts payable, and this year's principal on term loans.
Step 2: Divide working capital by gross farm revenue.
This is the single best early-warning number on the page. It tells you how big your cushion is compared with the size of your business.
Step 3: Work out your current ratio.
Current ratio = current assets divided by current liabilities.
Step 4: Check your term debt coverage.
Term debt coverage = (net farm income + non-farm income + depreciation + term interest - family living - income taxes) divided by (scheduled term principal + term interest).
Step 5: Answer the carryover question honestly.
Did any part of last year's operating loan roll into this year's? Yes or no.
Step 6: Score yourself.
Measure | Strong | Caution | Vulnerable |
Working capital ÷ gross revenue | Over 30% | 10-30% | Under 10% |
Current ratio | Over 2.0 | 1.3-2.0 | Under 1.3 |
Term debt coverage | Over 1.75 | 1.25-1.75 | Under 1.25 |
Debt-to-asset | Under 30% | 30-60% | Over 60% |
Operating expense ratio | Under 60% | 60-80% | Over 80% |
Interest expense ratio | Under 5% | 5-10% | Over 10% |
Ranges: University of Minnesota FINPACK Farm Finance Scorecard and University of Kentucky "Know Your Ratios" (June 2025). Some lenders and economists use stricter cut-offs. Purdue's Langemeier, for example, flags a working capital ratio under 20% as red.
Here is a made-up example to show the maths. Say a farm has $400,000 in current assets and $300,000 in current liabilities. Its working capital is $100,000. If gross revenue is $800,000, that is 12.5%. Caution zone, close to vulnerable. Its current ratio is 1.33, right on the edge.
That farm might look fine at the coffee shop. On paper, it is one bad season from trouble.
Field-Tested Play: Do this check twice a year, at the same dates each year, such as January 1 and July 1. Working capital swings with the seasons, so comparing the same date year to year shows you the real trend. Write the numbers on one page and keep it where you'll see it. If working capital to gross revenue drops two years in a row, treat it like a fire alarm, even if the bank hasn't said a word. |
Why crop money alone keeps farms stuck
Go back to Kooser Farms for a moment.
The farm traded a check that came every month for one payment a year. When the crops came in short, the farm was back in bankruptcy court. That is the hidden trap in many farm businesses. All your income arrives in a few weeks. All year, your costs keep coming.
So every spring, you borrow. Every fall, you hope. One bad year, and the carryover starts.
The fix is not just "cut costs." Most struggling farms have already cut to the bone. The fix is to add income that:
arrives before harvest, in spring and summer, when the operating loan is at its highest;
comes from a different market than your main crop, so a bad price year doesn't hit both; and
is paid in cash, at the gate, not 60 days after delivery.
That is what visitors and direct sales do. A pick-your-own patch in June. School field trips in spring. A farm stand. Events. Farm stays. A WhatsApp or email list of customers who buy straight from you.
I wrote about the math of this in Crop Prices Down, Diesel Up: Why Farms Are Turning to Agritourism to Survive.
Real farms that turned to visitors when money got tight
I don't want you to take my word for it. Here are real farms, from reliable sources, that faced serious money trouble and turned to paying visitors and direct sales.
Swank Farms, Hollister, California: the bank called the loans
After hearing about a corn maze in northern California, Dick Swank planted eight acres of Indian corn for a maze in the spring of 2000. That September he added a pumpkin patch and used his old cherry shack as a ticket booth. It was a very wet fall, but people still came. The money paid back a loan from a close friend and some bills.
Then, not long after Halloween 2000, Dick's local bank was sold. The new owners called in all of its agricultural loans. Years of stretching small amounts of money over large debts had damaged his credit. Another bank turned him down, but suggested he talk to the USDA.
Lavon Treasure, a USDA Farm Service Agency farm loan manager, approved a seven-year loan to pay off the bank, plus a yearly operating loan. In a later season of good weather, maze attendance doubled. In 2005, after their sixth maze season, the Swanks paid off that year's operating loan and the long-term loan, two years early. By the time Bonnie Swank wrote their story in 2008, their crews were going to as many as 21 farmers markets a week in the busy season.
Bonnie credited the people who backed them: "if Lavon and the USDA hadn't believed in us." Want to try the same idea? Start with How to Start a Corn Maze.
Chaney's Dairy Barn, Bowling Green, Kentucky: the milk didn't pay
By 2003, dairy farming had become less profitable for Carl and Debra Chaney. So they opened Chaney's Dairy Barn for tours and started making their own ice cream.
About 3,500 people toured in 2004. By 2023, Carl estimated about 15,000 would tour that year. Ice cream output grew from 5,000 gallons in the first year to 30,000 gallons in 2022.
In 2018, when milk prices had fallen nearly 40% since 2014, Carl told WBKO the store was what kept the business going: "Because of the ice cream store, we're able to continue to do business."
Meanwhile, Kentucky went from 2,100 dairy farms in 2000 to fewer than 400 by 2023.
Shatto Milk Company, Osborn, Missouri: started in desperation
Leroy and Barbara Shatto sold their milk to a co-op and struggled to get a price that covered costs. At one point, the farm was losing 45 cents on every 100 pounds of milk it sold. Leroy knew it couldn't go on.
In 2003, they started bottling their own milk in glass bottles. The Pitch reported in 2008 that the business began out of desperation. They opened the farm to tours. By 2008, the herd had grown from 80 to 300 cows, they had 26 employees, and tours ran five days a week.
Leroy was honest about the pressure, because one mistake can push a farm into bankruptcy: "Every day, I'm scared."
Right now, in Arkansas
This isn't only history. In the July-to-September quarter of 2026, Arkansas led the nation in Chapter 12 filings. Brett Dawson of IMOJE Dawson Family Farms told KARK, in a report from Lonoke, Arkansas, he had cut his herd from 40 head to about 10 because drought left too little grass.
What did he do? He brought in a logging company to clear about 20 acres, and he opened a petting zoo where schools come to see the animals. He's opening the gate to visitors, as Swank, Chaney and Shatto did.
If school groups appeal to you, read Farm Field Trips.
More farms that turned a crisis into a gate fee
Here on AgritourismSuccess.com, I've written case studies of farms that faced their own breaking points:
Carter Mountain Orchard, where a freeze killed the crop in 1974.
Big Daddy's Farm, which put up Christmas lights to pay the taxes on the land.
Roots Farm Shop, which couldn't afford to pay one more wage.
What the national numbers say
These aren't lucky exceptions. According to the 2022 Census of Agriculture, U.S. farms earned $1.26 billion from agritourism and recreation. That's up 12.4% from 2017 after inflation, according to the USDA Economic Research Service.
About 28,617 farms reported agritourism income in 2022, averaging $44,004 each, per Penn State's Northeast Regional Center for Rural Development. Separately, the USDA's National Agricultural Statistics Service reports that 116,617 farms sold $3.3 billion of products directly to consumers in 2022, up 16% from 2017.
$44,000 won't fix every balance sheet. But run it through the self-check above. If our made-up example farm kept even half of that as cash after costs, its working capital would rise from $100,000 to $122,000. That is a different conversation with your lender. For more numbers, see Agritourism Statistics 2026 and Is Agritourism Profitable?.
Field-Tested Play: Don't borrow to start. Test with what you already own. One weekend of pick-your-own, one school group, or one farm-to-table dinner tells you if people will pay. My guide How to Test Agritourism With a 60-Minute MVP walks you through it, and Launch Using Only the Infrastructure You Already Own shows you how to keep costs near zero. |
Reality Check: Agritourism is a business, not a rescue rope you grab the week before a default. It takes planning, insurance and time to build. If you are already deep in the red, talk to your lender and an attorney first (see the next section). Then use visitor income as part of a written turnaround plan, not instead of one. |
A short season taught me the same lesson
I learned this at Bloopy Durians.
I'm Stephen Loke, founder of Bloopy Durians in Bentong, Malaysia. Durian seasons are short. We get about four to five months a year, roughly December to February and June to August. If we relied only on fruit sold in season, we would have the same cash problem as a grain farm: a few big months, then a long wait.
So we built income that doesn't depend on one buyer or one payday.
We welcome visitors from all over the world. Many companies send their staff and management to the farm. Visitors reach us on a four-wheel-drive adventure. We supply durians for corporate events. And we rank at the top of Google for searches like "eat Musang King," so new visitors keep finding us.
The quiet hero is our WhatsApp list of loyal customers. Whenever durians are available, they buy. That list has become a reliable source of income, season after season.
You don't need a big farm to start. You need a reason for people to come, and a way to stay in touch after they leave.
Questions to ask your lender, attorney and accountant
This is not legal or financial advice. Every farm, state and country is different. But walking into a meeting with the right questions can save you months, and sometimes the farm.
Questions for your lender
"What working capital and term debt coverage numbers do you want to see from me?"
"How much of my current operating note is carryover from last year?"
"If I add a new income stream such as visitors or direct sales, what would you need to see in a written plan to support it?"
"If I fall behind, what restructuring options do you offer, and what are the deadlines?"
If you need a plan to show the bank, use my Free Agritourism Business Plan Template.
If you have a USDA Farm Service Agency loan
FSA borrowers have servicing rights. (These rules are for direct FSA loans. If your loan is FSA-guaranteed through a bank, ask that lender how servicing works.) Under FSA's published rules, when you are 90 days past due, FSA sends you a loan servicing packet. You then have 60 days from receiving it to return a completed application. You don't have to wait until you're delinquent: a borrower who is current can ask for the servicing packet at any time.
Options can include rescheduling, reamortization, consolidation, deferral and, for delinquent borrowers, write-down. If no workable plan is possible, FSA offers state-sponsored mediation or a meeting of creditors.
Ask your FSA office: "Which servicing options am I eligible for, and what are my deadlines?"
Farm mediation (U.S.)
USDA's Certified Mediation Program funds state programs that help farmers and lenders reach agreements. It covers farm loans from USDA and from commercial lenders. A neutral mediator helps you talk. They don't decide for you. Certified programs may charge a nominal fee.
Ask your state's program, if your state has one: "Can we mediate before my lender takes legal action?"
Chapter 12 in plain words
Chapter 12 is a bankruptcy designed for family farmers. It is a reorganization, not a liquidation. You usually keep farming while you repay creditors under a court-approved plan, typically over three to five years.
Filing triggers an "automatic stay," which stops most collection actions. To qualify as a family farmer, total debts must be no more than $12,562,250 (the figure listed by the U.S. Courts), at least half of your debts must come from farming, and more than half your gross income must come from farming (tested on recent tax years). You generally need credit counseling within 180 days before filing.
Questions for a farm bankruptcy attorney:
"Do I qualify for Chapter 12, and is it better for me than Chapter 11 or a workout outside court?"
"What happens to my land, equipment and family home?"
"How would new income from agritourism be treated in a repayment plan?"
Questions for your accountant
"Is my balance sheet up to date, with current and term debt split correctly?"
"What are the tax effects of selling livestock, machinery or land to pay debt?"
"How should I keep agritourism income and costs separate?"
See Agritourism and Taxes: Questions to Ask Your Accountant. And before the first visitor arrives, read Agritourism Insurance: What It Covers, What It Costs.
In Canada and the UK
Canada: Agriculture and Agri-Food Canada runs the Farm Debt Mediation Service. It offers free financial counselling and mediation for farmers having trouble meeting their financial obligations. One option includes a temporary halt on legal action by creditors while mediation runs.
UK: In England and Wales, the Farming Community Network is a charity whose volunteers give free, confidential support on personal and business problems, including financial difficulties. Its helpline, 03000 111 999, is open 7am to 11pm every day of the year. In Scotland, the charity RSABI supports people working in Scottish agriculture, including financial help with essentials, through a free helpline on 0808 1234 555, open 24 hours a day. In Northern Ireland, Rural Support offers farm business and finance guidance and a freephone Support Line on 0800 138 1678 (Monday to Friday, 9am to 9pm).
Reality Check: Deadlines matter more than feelings. Many farmers lose options because they waited for "one more season." Notices from lenders and FSA come with dates. Write them on the calendar the day they arrive, and call for help well before they pass. |
Your next 30 days
If your self-check came back "caution" or "vulnerable," here's a simple plan.
Week 1: Get your balance sheet up to date. Do the 10-minute self-check. Circle your weakest number.
Week 2: Book a meeting with your lender. Bring your numbers and the questions above. Ask exactly how much of your note is carryover.
Week 3: List what your farm already has that people would pay to see, pick, taste or learn: a barn, an orchard, animals, a creek, a view, a story. My 50 agritourism activities ranked by startup cost and profit will spark ideas.
Week 4: Pick one low-cost test for next spring, when your operating loan is highest. Write a one-page plan. Show it to your lender.
That's not a miracle. It's a start. And a start is what separates the farms in the survivor stories from the farms in the bankruptcy count.
Frequently asked questions
What are the early warning signs of farm bankruptcy?
The earliest sign is shrinking working capital, which usually shows up as carryover debt, meaning part of last year's operating loan rolls into this year's. Other red flags include working capital under 10% of gross revenue, a current ratio under 1.3, term debt coverage under 1.25, buying inputs only at the last minute, selling at harvest to pay bills, refinancing operating debt into land, and selling breeding stock or machinery to make payments.
What is carryover debt on a farm?
Carryover debt is the unpaid part of an operating loan that you couldn't pay off from that year's income, so it gets rolled into the next year's loan. In Purdue's early-2026 Ag Economy Barometer survey, 31% of producers expecting larger operating loans said unpaid debt from prior years was the reason, sharply higher than the year before.
What is a good working capital ratio for a farm?
The University of Minnesota's FINPACK Farm Finance Scorecard rates working capital above 30% of gross farm revenue as strong and below 10% as vulnerable. Some economists want more. Purdue's Michael Langemeier suggests 35% or higher and treats anything under 20% as a danger zone. Ask your lender which cut-offs they use.
How many farms filed Chapter 12 bankruptcy in 2026?
U.S. courts recorded 292 Chapter 12 cases from January to September 2026, nearly 19% more than the 246 in the same period of 2025, according to the National Agricultural Law Center. April 2026 alone had 62 filings by Epiq AACER's count, up 130% from April 2025 and the highest monthly total since February 2020. The full year 2025 had 315 filings.
Who qualifies for Chapter 12 bankruptcy?
Chapter 12 is for family farmers and fishermen with regular annual income. For family farmers, total debts must be no more than $12,562,250, per the U.S. Courts, at least half of those debts must come from farming, and more than half of gross income must come from farming. A farm attorney can tell you if you qualify and whether it's the right path.
Can agritourism really help a farm in debt?
It can help, but it's not instant. Farm visitors and direct sales bring cash in throughout the year, often before harvest, which can reduce how much you need to borrow. U.S. farms earned $1.26 billion from agritourism in 2022. Swank Farms in California added a corn maze and pumpkin patch, then paid off its long-term USDA loan two years early. Start small, insure properly and build it into a written plan.
Where can farmers in Canada and the UK get help with debt?
In Canada, the Farm Debt Mediation Service from Agriculture and Agri-Food Canada offers free financial counselling and mediation with creditors. In England and Wales, the Farming Community Network offers free, confidential support, including on financial difficulties, through its helpline on 03000 111 999, open 7am to 11pm every day. In Scotland, RSABI runs a free 24-hour helpline (0808 1234 555), and in Northern Ireland, Rural Support runs a freephone Support Line (0800 138 1678).
Find out how ready your farm is for visitor income
You've checked your money. Now check your farm.
My free Farm Readiness Quiz takes a few minutes and shows you:
which parts of your farm are already ready to earn from visitors;
the gaps to fix first, so you don't waste money;
whether you're better suited to u-pick, events, tours, farm stays or direct sales; and
your next step, in plain words.
Get 150 ways to bring cash in before harvest
If carryover debt is your problem, you need more ways for money to come in, and sooner. My free ebook, 150 Ways to Unlock Hidden Wealth From Your Farm, gives you:
150 ideas for earning from what your farm already has, from your barn and land to your story and skills;
low-cost ideas you can test next season without a new loan;
ideas that bring in cash in spring and summer, not just at harvest; and
real examples to show you what's possible.
P.S. Kooser Farms switched from a monthly milk check to one payday a year, and when the crops came up short, the farm ended up back in bankruptcy court. Don't let one payday decide your farm's future. Do the 10-minute self-check tonight, then take the quiz to see which visitor income fits your farm.
Stephen Loke of AgritourismSuccess.com, whose farm is featured in Bloomberg News and Asahi Shimbun.
This article is for general education only. It is not financial, legal, tax or insurance advice. Talk to a qualified lender, attorney, accountant or insurance agent about your own farm before making decisions.
Sources
"Farm Bankruptcies Hit Six-Year High in April," Farm Policy News, University of Illinois (news roundup citing Law360), 2026. https://farmpolicynews.illinois.edu/?p=34694
Epiq AACER / American Bankruptcy Institute, April 2026 bankruptcy filings release, May 6, 2026. https://www.abi.org/node/1002902
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"'A real farm crisis': Illinois farm bankruptcies rise for 3rd straight year," Capitol News Illinois (Tara Sun, Medill Illinois News Bureau), June 29, 2026. https://capitolnewsillinois.com/news/a-real-farm-crisis-illinois-farm-bankruptcies-rise-for-3rd-straight-year/
"Chapter 12 farm bankruptcy filings up significantly in Q3; Arkansas leads nation," University of Arkansas Division of Agriculture / National Agricultural Law Center (Mary Hightower), Oct. 22, 2026. https://www.uaex.uada.edu/media-resources/news/2026/october/10-22-2026-ark-nalc-q3-bankruptcies.aspx
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"Farm bankruptcies surge, but below peak," Capital Press (Mateusz Perkowski), April 29, 2026. https://capitalpress.com/2026/04/29/farm-bankruptcies-surge-but-remain-below-peak-levels/
"Highlights From the Farm Income Forecast," USDA Economic Research Service, updated Sept. 3, 2026. https://ers.usda.gov/topics/farm-economy/farm-sector-income-finances/highlights-from-the-farm-income-forecast
"Farm Sector Income & Finances: Assets, Debt, and Wealth," USDA Economic Research Service, updated Sept. 3, 2026. https://www.ers.usda.gov/node/3342
"USDA: Farm Sector Wealth Forecast to Grow in 2026," The MortgagePoint, Feb. 13, 2026 (February 2026 ERS forecast of $624.7 billion). https://themortgagepoint.com/2026/02/13/usda-farm-sector-wealth-forecast-to-grow-in-2026/
"Kooser Farms files Chapter 12 bankruptcy, seeks to reorganize after shift from dairy to crops," WPXI / Pittsburgh Business Times (Patty Tascarella), Oct. 9, 2025. https://www.wpxi.com/news/local/kooser-farms-files-chapter-12-bankruptcy-seeks-reorganize-after-shift-dairy-crops/L4QUJ6PJKBHBJJWAR7CZYVYTFE
"315 Chapter 12 Filings, 46% Surge: Kooser Farms Filed Again," The Bullvine (Andrew Hunt), Feb. 18, 2026. https://www.thebullvine.com/news/315-chapter-12-filings-46-surge-kooser-farms-filed-again-and-the-3-numbers-that-tell-you-how-close-you-are/
"Delta Farm Crisis: Family farms disappearing," KAIT (Diana Davis), Nov. 6, 2025. https://www.kait8.com/2025/11/07/delta-farm-crisis-family-farms-disappearing/
"Arkansas leads the nation in Chapter 12 farm bankruptcy filings," KUAF Ozarks at Large (Matthew Moore), Oct. 27, 2026. https://www.kuaf.com/show/ozarks-at-large/2026-10-27/arkansas-leads-the-nation-in-chapter-12-farm-bankruptcy-filings
"Farmer reacts to Arkansas leading the nation in farm bankruptcies," KARK (Blake DeJarnatt), Oct. 23, 2026. https://www.yahoo.com/news/us/articles/farmer-reacts-arkansas-leading-nation-224304488.html
"Rising Farm Debt and Financial Stress: Evidence from the Ag Economy Barometer," farmdoc daily (Michael Langemeier and Joana Colussi, Purdue University), Feb. 6, 2026. https://farmdocdaily.illinois.edu/wp-content/uploads/2026/02/fdd020626.pdf
"Second Quarter Midwest Farmland Values Unchanged," AgLetter No. 2013, Federal Reserve Bank of Chicago (Elizabeth Kepner and David Oppedahl), August 2026. https://www.chicagofed.org/publications/agletter/2025-2029/august-2026
"Farmfest Forum: Economists Warn Some Farmers Will Struggle to Finance 2027 Crops," DTN Progressive Farmer (Chris Clayton), Aug. 6, 2026. https://www.dtnpf.com/agriculture/web/ag/news/article/2026/08/06/farmfest-forum-economists-warn-will
"Why Lenders Focus on Working Capital," Farm Progress (Michael Langemeier, Purdue University), Nov. 20, 2019. https://www.farmprogress.com/farm-business/why-lenders-focus-working-capital
"Watch economic red flags and make changes," Farm Progress (interview with Michael Langemeier, Purdue University). https://www.farmprogress.com/farm-business/watch-economic-red-flags-and-make-changes
"Times Require Financial Management and a Great Lender," Purdue Agricultural Economics Report (Michael Boehlje, Michael Langemeier and Ken Foster), Dec. 13, 2015. https://ag.purdue.edu/commercialag/home/paer-article/times-require-financial-management-and-a-great-lender
"Examining Working Capital Trends in 2024 Amid Lower Net Farm Incomes," farmdoc daily (Gerald Mashange and Bradley Zwilling, University of Illinois), Nov. 14, 2025. https://farmdocdaily.illinois.edu/2025/11/examining-working-capital-trends-in-2024-amid-lower-net-farm-incomes.html
FINPACK Farm Finance Scorecard, University of Minnesota Center for Farm Financial Management (K. Becker, D. Kauppila, G. Rogers, R. Parsons, D. Nordquist, R. Craven), 2014 edition. https://agmanager.info/sites/default/files/pdf/FarmFinance_Scorecard.pdf
"Know Your Ratios," Economic and Policy Update 25(6), University of Kentucky (Kara Schlinke), June 30, 2025. https://agecon.mgcafe.uky.edu/sites/agecon.ca.uky.edu/files/Know%20Your%20Ratios.pdf
"Liquidity," University of Wisconsin-Madison Extension Farm Pulse (Katie L. Wantoch and Kevin Bernhardt). https://farms.extension.wisc.edu/articles/liquidity
"Chapter 12 - Bankruptcy Basics," United States Courts. https://www.uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-12-bankruptcy-basics
"Primary and Preservation Loan Servicing for Delinquent FSA Borrowers," USDA Farm Service Agency fact sheet, August 2019. https://www.fsa.usda.gov/sites/default/files/documents/primary_and_preservation_loan_servicing-for-deliquent-fsa-borrowers-fact_sheet-aug-2019.pdf
7 CFR 766.101, Initial loan servicing notification, Electronic Code of Federal Regulations (current). https://www.ecfr.gov/current/title-7/subtitle-B/chapter-VII/subchapter-D/part-766/subpart-C
"Certified Mediation Program," USDA Farm Service Agency. https://www.fsa.usda.gov/programs-and-services/certified-mediation-program
"Farm Debt Mediation Service," Agriculture and Agri-Food Canada, modified Sept. 25, 2026. https://agriculture.canada.ca/en/programs/farm-debt-mediation-service
The Farming Community Network (helpline and support). https://fcn.org.uk/
"The Farming Community Network," Zero Suicide Alliance member organisations (England and Wales coverage). https://zerosuicidealliance.com/member-organisations/farming-community-network
RSABI (Scotland), helpline and support. https://www.rsabi.org.uk/
Rural Support (Northern Ireland), Support Line and farm business support. https://www.ruralsupport.org.uk/
"Swank Farms, a USDA California Success Story," USDA Farm Service Agency (Bonnie Swank), April 2008. https://www.fsa.usda.gov/Internet/FSA_File/swank_story.pdf
"Chaney's Dairy Barn relies on ice cream shop to get through dairy crisis," WBKO (Dalton Godbey), June 12, 2018. https://www.wbko.com/content/news/Chaneys-Dairy-Barn-relies-on-ice-cream-shop-to-get-through-dairy-crisis-485318191.html
"How Chaney's Dairy Farm Thrived Against All Odds," Good News Magazine Bowling Green (Paige Cushman), Sept. 23, 2023. https://goodnewsmags.com/bowling-green/how-chaneys-dairy-farm-thrived-against-all-odds/
"For the makers of Shatto Milk, success is cold and tasty," The Pitch (David Martin), Sept. 18, 2008. https://www.thepitchkc.com/?p=40333
"2022 Census of Agriculture: The majority of U.S. counties generate some agritourism income," USDA Economic Research Service (Jonathan Law), Dec. 5, 2024. https://ers.usda.gov/data-products/charts-of-note/110552
"Agritourism and Recreational Services on US Farms: Data from the 2022 Census of Agriculture," NERCRD Data Brief 2024-1, Penn State (Jason S. Entsminger and Claudia Schmidt), 2024. https://nercrd.psu.edu/wp-content/uploads/2024/05/AgritourismDataBrief.May2024.pdf
"USDA Releases 2022 Census of Agriculture Data," USDA National Agricultural Statistics Service, Feb. 13, 2024. https://www.nass.usda.gov/Newsroom/2024/02-13-2024.php
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