Thursday February 12 Ag News - Farm Bankruptcies on the Rise - Fertilizer Prices Mixed - Ethanol Production Rebounds - MAP/FMD Dollars Allocated - and more!

Farm Bankruptcies Continued to Climb in 2025
Samantha Ayoub, AFBF Economist

Key Takeaways
    Chapter 12 bankruptcies increased for the second year in a row, reaching 315 filings in 2025. This is a 46% increase from 2024.
    The Midwest and Southeast filed 121 (+70%) and 105 (+69%) Chapter 12 cases, respectively, far outpacing any other regions. Deep crop losses across commodities common in these two regions have compounded after years of declining receipts and rising expenses.
    Families must earn the majority of their income from farming to qualify for Chapter 12. As off-farm income becomes more important for family benefits and supporting farms during economic downturns, many family farms are not eligible for Chapter 12 bankruptcies and may have to close altogether when debt and operating expenses become too great.

As we look ahead to another year of challenges in the farm economy, indicators of farm financial health are under close inspection. Filing for Chapter 12 bankruptcy is a last resort for farmers who have undertaken large debt to continue operating with increased flexibility for payments. AFBF Market Intel reports have long followed annual filings of Chapter 12 family farm bankruptcies, and this year’s uptick is another reminder of the strain American farmers and ranchers face.

The U.S. Courts report that 315 farm bankruptcies were filed in calendar year 2025, up 46% from 2024. While still down from recent highs, this is the second year in a row of increased filings. Chapter 12 also does not reflect larger trends in farm closures that may be the only option for certain struggling operations.

Chapter 12 Farm Bankruptcies by State
             2024  -  2025 
Nebraska  15  -  17
Iowa         07  -  18

Declining Farm Receipts Drive Local Increases
The most recent farm income forecast confirmed that the farm economy has faced extreme financial pressure, with little relief in sight. Significant losses are expected across crop sectors for another year, and many livestock sectors are also tightening margins. The Midwest and Southeast each filed 121 and 105 Chapter 12 cases, respectively, far outpacing any other regions. This is a 70% increase in filings for the Midwest, and a 69% increase in the Southeast.

Deep losses across commodities common in these two regions have compounded after years of declining receipts and rising expenses. For example, rice farmers are expected to lose over $200 per acre in loss, even after supplemental assistance. The nation’s leading rice- producing state, Arkansas, leads the U.S. in Chapter 12 filings in 2025 with 33 filings, more than double 2024 and the most in the state in the 21st century. Georgia follows with 27 filings, up 145% from 2024, reflecting both losses per acre in principal row crops and limited support for high-cost specialty crop production. Other Southeast states with double-digit bankruptcies include Texas and Louisiana with 12 each, and Florida with a 200% increase from 2024 to 16 filings.

In the Midwest, principal row crop losses combined with weakening dairy, hog and poultry markets have led to double-digit Chapter 12 filings in Iowa (18, +220%), Nebraska (17, +29%), Missouri (16, +167%), Wisconsin (16, +700%), Minnesota (13, +300%) and Kansas (11, +10%).

Other states with significant increases in filings in 2025 include Montana, with 200% more filings, and Pennsylvania with a 160% increase in filings. While California was unchanged from 2024, they tie for fourth-highest number of filings with 17 in 2025, reflecting continued price and cost pressures on their diverse agricultural industries.

Yet Another Sign of a Struggling Farm Economy
Farm bankruptcy filings are a lagging indicator that spike when prolonged financial pressures push farms to explore last resorts. According to the Federal Reserve Bank of Kansas City, farmers are taking more larger operating loans and taking longer to repay them. USDA estimates that total farm debt will rise 5.2% to a record $624.7 billion in 2026, highlighting the financial backing farmers need under current conditions.

This is driven especially by the need for additional lines of credit simply to cover input costs, rather than business investments. Nearly 40% more new farm operating loans were opened in the fourth quarter of 2025 than in 2024. At the individual farm level, the average operating loan in 2025 was 30% larger with an average maturity, or payment length, three months longer than 2024. For machinery and equipment loans specifically, the average maturity hit the highest level since 2021, signaling how difficult it is to invest in operational upgrades. On top of this drastic need for credit to get through the year, interest rates remain above decade averages, with interest expenses expected to reach a record $33 billion in 2026 across the farm economy.

All of these credit and debt factors rare stretching farmers and ranchers to the brink. With expected financial pressures into the future, Chapter 12 provides an opportunity to better manage the debt loads that have kept operations afloat.

Chapter 12 Bankruptcy not Always an Option
However, many farms do not qualify for Chapter 12. Particularly in down years, off-farm income has become a crucial resource for many farms to provide benefits for their families and support their farming enterprise. Yet, earning most of your income from off-farm employment disqualifies farmers from Chapter 12. So, many families may face the even more difficult decision to sell land, limit production or close their farm altogether. This continues the alarming rate of farm loss in the United States, with over 160,000 farms closing between 2017 and 2024. 

Conclusion
Increases in Chapter 12 bankruptcies once again highlight the continued pressures American farmers and ranchers face. A fourth consecutive year of expected declines in farm income will continue to strain agriculture, placing further reliance on credit options that are growing thin. For many families, excessive debt loads could be met with little flexibility as Chapter 12 eligibility prohibits them from using the tool specifically designed to accommodate downturns in the farm economy. Instead, we will likely continue to see increases in both bankruptcy and farm closures, further straining the remaining farms – and the food, fiber and fuel supply chain for all Americans.
 



PVC Ladies Nite is Feb 16
Caleb Franzen, President

First of all, thanks to everyone who attended our January membership meeting in Columbus. We had a great turnout. We look forward to seeing you at the Annual Banquet on the 14th before our next meeting.

The next meeting of the Platte Valley Cattlemen will be Monday, February 16, 2026 at Wunderlich's in Columbus. This is our ladies' night, so bring your bride along for supper. Our social hour will start at 6:00 PM. We want to thank First National Bank for sponsoring the social hour. The meal will be at 7:00 PM. We want to thank Columbus Sales Pavilion for sponsoring the meal.

We will have 402 Tallow talk to us about their business and how they make their different products locally. Please join us. We look forward to seeing you on Monday, February 16, 2026 at Wunderlich's.



Nebraska Wheat Board Announces February Meeting

The Nebraska Wheat Board (NWB) will hold its next meeting on Tuesday, February 24, 2026 at the Holiday Inn Hotel & Convention Center in Kearney, NE. The meeting will begin at 8:30 a.m. CST. 

During the meeting, the NWB board will receive reports from members on committee activities as well as the University of Nebraska-Lincoln and Nebraska Wheat Growers Association. They will review funding proposals for the first time and determine travel & participation in upcoming meetings and events. The public is welcome to attend any open portion of the meeting. Interested individuals may contact the NWB office for a copy of the detailed agenda or for more information.

The Nebraska Wheat Board administers the excise tax of 0.5% of net value of wheat marketed in Nebraska at the point of first sale. The board invests the funds in programs of international and domestic market development and improvement, policy development, research, promotion, and education.



Urea Up 5% From Month Ago, Other Fertilizer Prices Remain Varied

DTN retail fertilizer prices for the first week of February 2026 are evenly mixed. Four fertilizers were slightly lower in price compared to last month while the other four were slightly higher. DTN designates a significant move as anything 5% or more.

One fertilizer with a sizeable price increase was urea. The nitrogen fertilizer was 5% higher compared to last month with an average price of $596/ton. The other higher-priced nutrients were DAP with an average price of $851/ton, MAP $879/ton and potash $488/ton.

The four fertilizers with slightly lower prices were 10-34-0 with an average price of $665/ton, anhydrous $860/ton, UAN28 $410/ton and UAN32 $464/ton.

On a price per pound of nitrogen basis, the average urea price was $0.65/lb.N, anhydrous $0.52/lb.N, UAN28 $0.73/lb.N and UAN32 $0.73/lb.N.

All eight fertilizers are now higher in price compared to one year earlier: 10-34-0 by 5%, MAP 9%, potash 12%, both DAP and urea 14%, anhydrous 16%, UAN32 20% and UAN28 by 23%.



Weekly Ethanol Production for 2/6/2026

According to EIA data analyzed by the Renewable Fuels Association for the week ending February 6, ethanol production rebounded 16.1% to 1.11 million b/d, equivalent to 46.62 million gallons daily. Output was 2.6% higher than the same week last year and 4.7% above the three-year average for the week. Still, the four-week average ethanol production rate declined 1.9% to 1.08 million b/d, equivalent to an annualized rate of 16.52 billion gallons (bg).

Ethanol stocks edged up 0.4% to 25.2 million barrels. Yet stocks were 1.7% less than the same week last year and 1.4% below the three-year average. Inventories built across the East Coast (PADD 1) and Rocky Mountains (PADD 4) but thinned across the remaining regions.

The volume of gasoline supplied to the U.S. market, a measure of implied demand, improved 1.8% to 8.30 million b/d (127.59 bg annualized). Yet demand was 3.2% less than a year ago and 0.5% below the three-year average.

Refiner/blender net inputs of ethanol recovered by 6.3% to 841,000 b/d, equivalent to 12.93 bg annualized. Still, net inputs were 1.5% less than year-ago levels and 2.6% below the three-year average.

Ethanol exports scaled back 36.6% to an estimated 137,000 b/d (5.8 million gallons/day), a 4-week low. It has been more than a year since EIA indicated ethanol was imported.



USDA Announces Farmer and Rancher Freedom Framework to End Agricultural Lawfare

Secretary of Agriculture Brooke L. Rollins announced the launch of the Farmer and Rancher Freedom Framework, a bold initiative to protect America’s agricultural heritage and defend farmers, ranchers, and agricultural producers from politically motivated lawfare. Secretary Rollins was joined by U.S. Housing and Urban Development (HUD) Secretary Scott Turner, country music artist and songwriter John Rich, Representative James Comer, and several farming families who have been targets of agricultural lawfare.

“As we approach the 250th anniversary of the United States, it is high time to recall a simple but profound truth about our nation: the United States was built by those who work the land. And the ability to work, protect, and own land and property continues to symbolize the American dream today,” said Secretary Brooke L. Rollins. “The strength of America has always been rooted in the hands that till its soil and care for its livestock. When we protect our farmers and ranchers, we protect the very foundation of freedom and prosperity. Together, we will ensure that no law, no regulation, and no agenda will ever stand in the way of America’s agricultural future.”

The Farmer and Rancher Freedom Framework is a four-pillar comprehensive plan to protect, preserve, and partner with American agriculture, while ending onerous regulations and the weaponization of government against American farmers and ranchers. It formalizes USDA’s ongoing efforts to eliminate systemic agricultural lawfare and restore fairness to rural America. By formalizing this Framework, USDA will continue to help reduce the cost of production for farmers and help them focus on producing the most nutritious, wholesome, and affordable food supply in the world. Agricultural lawfare is the use of administrative, legal, and legislative government systems to adversely impact farmers, ranchers, and agricultural producers.

The Framework’s Four Pillars:
    Protect Producers: Defend farmers and ranchers from internal federal bureaucracy and politically motivated enforcement actions.
    Preserve Land and Liberty: Safeguard agricultural land from unnecessary federal projects and eminent domain.
    Purge Burdensome Regulations: Remove punitive rules that stifle productivity and reform environmental laws to balance conservation with common sense.
    Partner for Agriculture’s Future: Unite federal, state, and local leaders, along with industry partners, to fight lawfare and elevate public awareness.

For more information and to report instances of lawfare, visit www.usda.gov/lawfare.



USDA to Open Continuous and General Conservation Reserve Program Enrollment for 2026

The U.S. Department of Agriculture (USDA) Tuesday announced the enrollment periods for agricultural producers and landowners to submit offers for the Continuous and General Conservation Reserve Program (CRP). USDA’s Farm Service Agency (FSA) is accepting offers for Continuous CRP starting Feb. 12, 2026, through March 20, 2026. Enrollment for General CRP will run from March 9, 2026, through April 17, 2026. FSA will announce dates for Grassland CRP signup in the near future.

CRP is USDA’s flagship conservation program, providing financial and technical support to agricultural producers and landowners who place unproductive or marginal cropland under contract for 10-15 years and who agree to voluntarily convert the land to beneficial vegetative cover to improve water quality, prevent soil erosion and support wildlife habitat. The Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026, extends FSA’s authority to administer CRP through Sept. 30, 2026.

“We’re still very close to the 27-million-acre statutory cap with 1.9 million acres available for all CRP enrollments this fiscal year so enrollment is likely to be competitive,” USDA’s Under Secretary for Farm Production and Conservation Richard Fordyce said. “This isn’t about the total number of acres enrolled, it’s about producers and landowners offering and USDA accepting the acres that can best deliver real, lasting benefits to soil, water and wildlife.”

Continuous CRP (Signup 65)
FSA will batch Continuous CRP offers submitted by interested agricultural producers and landowners. Offers to re-enroll expiring CRP continuous acreage will be accepted on a first-come, first-serve basis. New acreage offered in continuous CRP practices will be considered for acceptance on a first-come, first-serve basis if they support USDA conservation priorities including but not limited to practices that address water quality, such as filter strips and grass waterways, and practices that restore native ecosystems or target specific resource concerns.

The first Continuous CRP batching period ends on March 20, 2026. Offers submitted after this date will be considered for acceptance in subsequent batching periods if acreage remains available.

Continuous CRP participants voluntarily offer environmentally sensitive lands, typically smaller parcels than offered through General CRP including wetlands, riparian buffers, and varying wildlife habitats. In return, they receive annual rental payments and cost-share assistance to establish long-term, resource-conserving vegetative cover.

Continuous CRP enrollment options include:
· Clean Lakes, Estuaries and Rivers (CLEAR) Initiative: Prioritizes water quality practices on the land that, if enrolled, will help reduce sediment loadings, nutrient loadings, and harmful algal blooms. The vegetative covers also contribute to increased wildlife populations.

· CLEAR30 (a component of the CLEAR Initiative): Offers additional incentives for water quality practice adoption and can be accessed in 30-year contracts.

· Highly Erodible Land Initiative (HELI): Producers and landowners can enroll in CRP to establish long-term cover on highly erodible cropland that has a weighted erodibility index greater than or equal to 20.

· Conservation Reserve Enhancement Program (CREP): Addresses high priority conservation objectives of states and Tribal governments on agricultural lands in specific geographic areas.

· State Acres for Wildlife Enhancement Initiative (SAFE): Restores vital habitat in order to meet high-priority state wildlife conservation goals.

General CRP (Signup 66)
General CRP offers are submitted through a competitive bid process. After the enrollment period closes, General CRP offers are ranked and scored by FSA, using nationally established environmental benefits criteria. USDA will announce accepted offers once ranking and scoring for all offers is completed. In addition to annual rental payments, approved General CRP participants may also be eligible for cost-share assistance to establish long-term, resource-conserving vegetative cover.



ASA, USSEC & WISHH Welcome USDA Allocation of Foreign Market Development and Market Access Program Funding

The American Soybean Association (ASA), the U.S. Soybean Export Council (USSEC) and the World Initiative for Soy in Human Health (WISHH) announced today that the USDA Foreign Agricultural Service (USDA-FAS) has allocated $16,845,357 in Market Access Program (MAP) and Foreign Market Development (FMD) funds to support the promotion of U.S. Soy in international markets during the 2026 program year (January–December).

“The FMD and MAP programs are essential tools that enable American soybean farmers to compete and succeed in the global marketplace,” said Stephen Censky, ASA CEO. “Through our partnerships with USSEC and WISHH, ASA strategically leverages these resources to build long-term capacity and demand for U.S. Soy around the world.”

Historically, U.S. market development programs have proven to deliver powerful returns helping to ensure U.S. farmers stay competitive in feeding a growing world; a 2022 study examining 17 years of USDA investments in market development found that every dollar invested returned $24.50.

“These program investments are vital for helping U.S. Soy sustain and expand global market opportunities by building partnerships, addressing customer needs, and delivering the transparency and sustainability that international buyers value,” said Jim Sutter, USSEC CEO. “We are grateful to USDA-FAS for championing U.S. agricultural export trade efforts around the world.”

This year’s allocation represents a 5.6% increase from 2025 funding levels, underscoring continued confidence in U.S. Soy’s contribution to the U.S. economy as a vital supplier in global food, feed, and fuel systems. In marketing year 2024/25, U.S. Soy exported 68.7 million metric tons valued at $29.6 billion of U.S.-grown whole soybeans, soybean meal, soybean oil — a 12.8% increase in year-over-year volume and a 2.95% gain over the five-year average.

The funding will be distributed via ASA, the cooperator of record for U.S. Soy’s participation in the MAP and FMD programs, to USSEC and WISHH to enhance market access, technical support, and demand-creation activities through strategic market development in emerging, developing, expansion and mature markets worldwide, creating long-term demand and expanded trade opportunities for U.S.-grown soybeans. 



USMEF Statement on 2026 USDA Market Access Program and Foreign Market Development Program Allocations

On Feb. 11, the USDA Foreign Agricultural Service announced its 2026 allocations under the USDA Market Access Program (MAP) and Foreign Market Development (FMD) program, which are key investments aimed at advancing U.S. agricultural exports.

U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom issued this statement:

With outstanding support from the USDA Foreign Agricultural Service, MAP and FMD are essential programs for developing new destinations for U.S. products – including U.S. pork, beef and lamb – and for defending U.S. agriculture’s market share worldwide. These programs have a proven track record of delivering critical returns for U.S. farmers, ranchers and the entire red meat supply chain. USMEF greatly appreciates our inclusion in the programs, and we look forward to further expanding global demand for U.S. red meat in the year ahead. 



U.S. Grains & BioProducts Council Thanks USDA’s Foreign Agricultural Service For Market Access Program and Foreign Market Development Awards

Wednesday, to help expand export markets for U.S. food and ag products, the U.S. Department of Agriculture’s Foreign Agricultural Service (FAS) announced awarding more than $212 million through the Market Access Program (MAP) and Foreign Market Development (FMD) program. 

FAS broke the allocations out to $181,397,751 for the MAP program and $31,331,501 in FMD.

MAP allocates funds to ag industry organizations across the United States to promote U.S. fruits, vegetables, nuts, processed products and bulk and intermediate commodities to global consumers. The Foreign Market Development (FMD) program benefits U.S. farmers, processors and exporters by addressing long–term foreign market import constraints and by identifying new markets or new uses for U.S. agricultural commodities.

FAS establishes public-private partnerships with non-profit U.S. agricultural trade associations like USGBC to open markets and conduct overseas marketing and promotional activities on behalf of U.S. agricultural producers and processors.

In response to the announcement, USGBC President & CEO Ryan LeGrand said:

“Our job at the U.S. Grains & BioProducts Council is to open new markets for our farmers, ranchers, and producers, and both MAP and FMD annual allocations allow us to meet our mission to develop markets, enable trade and improve lives for those around the world and here at home.

“We thank President Trump and his administration, specifically USDA Secretary Brooke Rollins and Undersecretary Luke Lindberg, for these funds that allow our organization to develop global markets and promote exports of our corn, sorghum, barley, ethanol and co-products.”



USGBC Membership Meeting Begins With MOU Signing In Panama

The 23rd International Marketing Conference (IMC) and 66th Annual Membership Meeting welcomed U.S. Grains & BioProducts Council (USGBC) members in Panama City, Panama to plan for the upcoming year and hear from Council experts about new market opportunities.

IMC provides members with an overview of the Council’s strategy for the coming year and includes several Advisory Team (A-Team) sessions, where experts in various agricultural commodities and markets come together to conduct market and commodity-specific analyses while sharing experiences relevant to their industry for this year.

USGBC Chairman Mark Wilson began Wednesday’s proceedings, and the audience received a welcome to Panama City by the U.S. Ambassador to the Republic of Panama Kevin Marino Cabrera.

“Panama plays an important role both as a key trading partner for the United States and as a global logistics hub,” Ambassador Cabrera said. “The U.S. embassy is committed to promoting U.S. exports and facilitating dialogue and engagement among stakeholders.”

“Our partnership with the U.S. Grains & BioProducts Council and other U.S. Department of Agriculture cooperators in Panama means we are doing everything to increase trade. Which in turn trends into logistics, storage, maritime transportation and reinforces Panama’s role as a regional hub.”

The Council then welcomed the Panama Canal Authority Administrator Dr. Ricaurte Vásquez Morales to provide insight into the Panama Canal’s role in strengthening global trade and agricultural supply chains.

Wilson initiated a ceremonial Memorandum of Understanding (MOU) cover letter signing between USGBC and the Panama Canal Authority. The signing between the Council and Panama Canal Authority officially occurred last November, but Dr. Vásquez, Wilson and USGBC President & CEO Ryan LeGrand each signed the official cover letter acknowledging the MOU with Ambassador Cabrera witnessing the signatures.

“The U.S. Grains & BioProducts Council and the Panama Canal Authority (ACP) share a long-established partnership rooted in their mutual understanding of the Panama Canal’s critical role in assuring smooth international trade flows,” Wilson said. 

“The renewal of the memorandum of understanding (MOU) between the two parties reflects the continued success of past collaboration and a shared commitment to strengthening the relationship as market dynamics and opportunities evolve.”

The MOU will serve as a framework for future initiatives that may include, but are not limited to, facilitating dialogue between ACP and the U.S. shipping industry, conducting a feasibility study to assess the opportunity for a grain storage facility on the canal and sharing of data related to trade flows, transit information and export volumes.

The general session concluded with an overview of the Council’s recent activities and outlook for the future from LeGrand.

“We are thrilled at the possibilities that lie before us in our inaugural year as the U.S. Grains & BioProducts Council, and we won’t stop working to find homes for the corn, sorghum and barley that you grow, as well as the ethanol and co-products you produce,” LeGrand said.

“It is our mission, it is our purpose and we will never stop working for you and your future generations.”

Thursday will feature a close-up look of the Panama Canal as attendees will participate in Council programming conversations on Latin America and Asia and Advisory Team (A-Team) meetings as they ride along the critical waterway before the meeting concludes on Friday.