Arkansas leads the U.S. in farm bankruptcies as rice growers face crushing financial strain. Chapter 12 filings hit 315 nationally in 2025-a 46% jump-led by Arkansas with 33, more than double its prior year.
The state, the nation’s top rice producer, is projecting losses over $200 per acre despite federal aid. Low commodity prices and soaring input costs-including fuel, fertilizer, and equipment-are squeezing family farms.
Kenneth Graves, chairman of the Arkansas Rice Growers Association, warned that up to one-third of row crop farmers could exit if conditions persist. The fallout would ripple through rural economies, hitting suppliers and small businesses.
Farm Bureau economists cite record farm debt-projected at $624.7 billion by 2026-and rising interest costs as key pressures. Many farmers don’t qualify for Chapter 12 protection due to reliance on off-farm income.
Excessive rainfall in northeast Arkansas left fields unplanted, compounding losses. Graves stressed immediate relief is needed: “Farmers need something this year, and now.”