Arkansas agricultural operations filed 32 Chapter 12 bankruptcy cases through September 2026, putting the state close to its total for all of 2025 and above twice the number recorded in 2024, figures cited by the University of Arkansas Division of Agriculture show.
The filings made Arkansas the state with the highest number of Chapter 12 cases during the first nine months of 2026, according to an October analysis by the university division that used figures from the American Farm Bureau Federation. Arkansas also ranked first nationally in 2025, when farmers filed 33 Chapter 12 cases.
Chapter 12 provides a bankruptcy process for family farmers seeking to reorganize debt while continuing to operate. The recent filings include agricultural operations seeking protection to remain in business as well as farmers leaving agriculture, K8 News reported.
Filings rose after a temporary decline
The university division’s figures show that Arkansas’ filings through September were already more than double the state’s total for all of 2024. The 2026 count also nearly matched the 2025 total with three months remaining in the year.
- 2026: 32 filings through September.
- 2025: 33 filings for the full year.
- 2024: The 2026 total through September was more than twice the full-year figure.
Jonesboro managing attorney Joel Hargis told K8 News that the financial pressures facing farmers resemble those that led to the creation of Chapter 12 in the 1980s. The bankruptcy protection was designed to help family farmers address debt while maintaining their operations.
Hargis said filings had begun to decline in 2021 after increasing for roughly a decade, but the improvement did not last. The number of cases began rising again within several years, according to his account. After handling a large number of Chapter 12 cases, Hargis began accepting Chapter 7 and Chapter 13 matters only through referrals.
Hargis said state and federal officials need to provide broader assistance for farmers facing financial strain. He also raised concerns about who will operate farms as more families leave agriculture, describing conversations with men and women ranging from their mid-20s to late 60s who said they were leaving the industry.
The Chapter 12 filings add to a recent record of financial pressure on Arkansas agriculture. The figures cover court filings through September and do not represent a final total for 2026.
