Having long followed annual filings of Chapter 12 farm bankruptcies through good and bad years for the farm economy, American Farm Bureau (AFBF) Market Intel reports recently took another look at farm bankruptcies and found some tough numbers. According to AFBF's author on this topic Samantha Ayoub, the U.S. Courts reports that 216 farm bankruptcies were filed in 2024, up 55% from 2023. AFBF does point out that this is still 64% lower than the all-time high of 599 filings in 2019. But the biggest signal this proves is that true pain exists in farm and ranch country.
This is even more reason why the USDA’s recent promise to honor previously signed contracts is encouraging. Last week, newly appointed U.S. Secretary of Agriculture Brooke Rollins announced that USDA will release the first tranche of funding that was paused due to the review of funding in the Inflation Reduction Act (IRA).
In alignment with White House directives, Secretary Rollins will honor contracts that were already made directly to farmers. Specifically, USDA is releasing approximately $20 million in contracts for the Environmental Quality Incentive Program, the Conservation Stewardship Program, and the Agricultural Conservation Easement Program.
“American farmers and ranchers are the backbone of our nation,” said Secretary Rollins. “They feed, fuel, and clothe our nation—and millions of people around the world. The past four years have been among the most difficult for American Agriculture, due in no small measure to Biden’s disastrous policies of over-regulation, extreme environmental programs, and crippling inflation. Unfortunately, the Biden administration rushed out hundreds of millions of dollars of IRA funding that was supposed to be distributed over eight years. After careful review, it is clear that some of this funding went to programs that had nothing to do with agriculture — that is why we are still reviewing — whereas other funding was directed to farmers and ranchers who have since made investments in these programs. We will honor our commitments to American farmers and ranchers, and we will ensure they have the support they need to be the most competitive in the world.”
American Farm Bureau Federation President Zippy Duvall commented last week on the Trump administration decision as well. “Farm Bureau appreciates the decision by Agriculture Secretary Brooke Rollins to release funds for conservation program contracts that USDA entered into with farmers and ranchers. The freezing of funds created uncertainty for farm families who had already invested in improvements to their land after receiving a financial commitment from the federal government.”
He had previously met with Secretary Rollins and conveyed concerns over this issue and others, along with priorities on the minds of rural Americans. “I was glad to hear this news as well as her strong commitment to continue to champion the issues of America’s farmers and ranchers,” added Duvall.
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