Recently, a large group of farmers in Arkansas gathered to plead for federal assistance as export prices plummet and input costs increase.

But this crisis extends nationwide.

US farm debt is expected to reach $561.8 billion by the end of 2025, a 3.7% increase from the previous year, with Chapter 12 bankruptcies nearly doubling in the first quarter of this year. In Arkansas, where agriculture brings $16 billion annually, farmers are losing hope [1].

“Right now, there’s no optimism, there’s no way to look at a profit,” Kenny Qualls, a farmer from Lake City, Arkansas, told K8 News in Jonesboro. “A lot of people are going to be getting out. We always look for the next year, but the next year is not promising anything better. It’s taken away hope for a lot of people.” [2]

Can Arkansas’ — and America’s — struggling farmers expect federal help? Or will bankruptcy sweep the sector?

Farmers in northeast Arkansas could soon be losing their land at an alarming rate, according to Paul McAnally of Southern Bancorp.

That’s because they’ve been dealing with a perfect storm of extreme weather and tariffs that have seen their crops both decimated and without international buyers. They recently met with federal officials to express their concerns about the potential lack of federal assistance, but the aid is uncertain.

“Where we are needing help is some kind of federal assistance. We started in 2023 and 2024 being off years,” McAnally told K8 News. “Some farmers had to refinance in ’25 for this year to be able to stay in business and right the ship.”

Agriculture is a big part of the Arkansas economy, but 2025 has proven to be a year tougher than most. Severe flooding in April resulted in 10 deaths and caused $78 million in crop damage [3]. Then, President Trump’s tariff policy angered China customers who typically purchase half of the state’s soybean crops, with no soybean orders to date. Chinese imports account for approximately one-tenth of all US agricultural output [4].

Soybean prices are at their lowest levels since the pandemic, with prices potentially dropping below $10 per bushel. In 2023, farmers received $13.10 per bushel [5].

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Farmers are also dealing with increased overhead on everything from seed and machinery to farm laborers. Immigration raids have depleted farms of foreign manual laborers who typically work for lower wages than American laborers.

“This year, the labor shortfall in US agriculture will exceed 400,000 jobs,” said Michael Marsh, president and CEO of the National Council of Agricultural Employers. “Technology will not fill that need.”

Read more: Rich, young Americans are ditching stocks — here are the alternative assets they’re banking on instead

Now the situation is dire. According to McAnally, up to one-third of Arkansas farmers could face bankruptcy.

The question many are asking is how long banks will continue to support their struggling farmers. Elsewhere, farmers are already struggling to secure financing.

“Bankruptcies are on the rise, and you will see many more on the auction block in the coming months, especially this fall,” said John Boyd of the National Black Farmers Association. “I was turned down by banks for the simple fact of low commodity prices due to the president’s tariffs.”

According to reports, the Trump administration is considering another farmer bailout. Still, many smaller farmers believe that any bailout is only temporary, with large agricultural conglomerates waiting in the wings to swoop in and acquire foreclosed farms [6].

“This is what farmers know and experience,” farmer Adam Chappell told Farm Journal. “You can bet your a– the monopolies will get their money. If you think otherwise, you’ve got blinders on.”

“I really don’t think people understand how bad the situation is. It hasn’t gotten a lot of attention, and even if the government were to step in with a large payment, that may be a temporary band-aid,” said Qualls, the Lake City farmer. “There’s a lot of little stuff that could happen to help a little bit, but until our markets turn around and our inputs come down, it’s not going to get any better.”

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[1]. Newsweek. “It’s the worst time to be an American farmer in decades”

[2]. K8 News — Jonesboro, Arkansas. “Banker gives perspective on farming crisis”

[3]. University of Arkansas Division of Agriculture. “Analysis suggests historic flooding results in $99 million in crop-related damages”

[4]. Fortune. “Farmer says ‘we’re in a very dire situation’ ahead of harvest”

[5]. Arkansas Farm Bureau. “Arkansas soybean facts”

[6]. Farm Journal. “Outraged farmers blame ag monopolies as catastrophic collapse looms”

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