2024 Farm Bankruptcies: One in Indiana, 12 in Michigan, Says Farm Bureau

The number of farms that filed for Chapter 12 bankruptcy across the U.S. last year was up 55 percent compared to 2023 according to the American Farm Bureau Federation. However,  one of Indiana’s neighbors saw a huge spike in farm bankruptcies.

“It’s not terribly surprising, but it’s always concerning,” says Loren Koeman, Lead Economist for Michigan Farm Bureau.

In Indiana, only one farm filed for Chapter 12 bankruptcy in 2024. But, in Michigan they had 12 farms file for bankruptcy last year. The year before, they had none! Why the significant increase in farm bankruptcies in the Great Lakes State?

“In some areas, we had some tough growing seasons over the past couple of years,” according to Koeman. “We also had challenges in the specialty crop industry. We have a lot more specialty crops. Michigan has the second most diverse agriculture in the U.S., but those farms have been having a tough time—from import pressures keeping prices lower, as well as labor costs.

“Unfortunately, the only way many of the specialty crop farms can find labor is to bring in guest workers from other countries. Farmers are mandated to pay right around $30 an hour it works out to, and that’s just gotten prohibitively expensive,” he says.

 

Koeman adds that the overall increase in farm bankruptcies proves why your lawmakers in Washington, D.C. need to get a new Farm Bill across the finish line for 2025.

“We’re really calling on Congress to look at that Farm Bill safety net. It’s been pushed down the road and we’re really looking for something to make sure that that safety net is in place for our farmers. There are also some disaster funds that were announced at the end of last year for Michigan farmers, so those will be really helpful now that Secretary Rollins has been confirmed. We’re hoping those get out quickly and into the hands of our farmer-members who really need them as these numbers are showing,” he says.

The good from the survey is that total U.S. farm bankruptcies are down 64 percent compared to where they were in 2019.

CLICK HERE to check out the full study from American Farm Bureau Federation.

CLICK BELOW to hear Hoosier Ag Today’s radio news report:

 

CLICK BELOW to hear C.J. Miller’s conversation with Loren Koeman, Michigan Farm Bureau’s Lead Economist.