U.S. Farm Bankruptcies Rise Amid Trade and Fuel Costs

American farmers are experiencing severe financial distress in 2026, driven by a combination of rising operational costs and international conflicts. A war between the United States and Iran has pushed diesel fuel prices up 80% and fertilizer costs up 15%, expenses that producers cannot pass on to consumers.

Simultaneously, a trade war with China has devastated exports of beef, pork, wheat, and cotton. While soybean sales have partially recovered from previous tariff-related declines, the overall export market remains strained. The American Farm Bureau Federation reports that approximately 200,000 farms have gone out of business since 2020, with bankruptcies rising 19% in the 12 months ending in June.

Despite these losses, the United States Department of Agriculture projects an increase in overall farm revenue due to rebounding crop prices. However, these gains are offset by the surge in input expenses, leaving major row crop producers projected to lose money for the fourth consecutive year.