Which FSA Farm Loan Borrowers Filed Bankruptcy Between 2015–2025?

The study wasn't looking at every farm bankruptcy in America.

Instead, it focused specifically on producers who had financing through the Farm Service Agency. That includes both direct loans made by the FSA and commercial loans backed by an FSA guarantee.

For those unfamiliar with the program, the Farm Service Agency plays an incredibly important role in American agriculture. Their mission is to help producers who may not yet qualify for conventional financing on their own. That often includes beginning farmers and ranchers, young producers, smaller family operations, or those rebuilding after financial setbacks. In many cases, without the FSA, these producers might never have the opportunity to purchase land, livestock, equipment, or expand their operations.

I believe the FSA deserves a great deal of credit. Their loan programs have helped thousands of producers get started, stay in business, and work through difficult financial periods. This report isn't a criticism of the FSA—it is simply a snapshot of the financial challenges facing some of the producers they serve.

As I read through the article, four things really stood out to me.

1. North Dakota Wasn't on the List

This was my biggest surprise.

Considering what agriculture has experienced over the past several years—higher interest rates, lower commodity prices, rising input costs, and tighter operating margins—I expected North Dakota to rank near the top in bankruptcy filings.

It didn't.

In fact, North Dakota wasn't among the leading states in either the Direct Loan or Guaranteed Loan bankruptcy data.

To me, that's encouraging.

I think it speaks to the strength of many North Dakota farm operations. Producers here have generally built strong balance sheets over time, benefited from resilient land values, and historically managed debt conservatively. While there is certainly financial stress across the state, many operations still have options before bankruptcy ever becomes part of the conversation.

2. Beef Cattle Was Tied with Dairy

Dairy being near the top wasn't surprising.

Dairy operations require tremendous capital investment, labor, and cash flow. Margins can be razor thin, and producers have dealt with significant volatility over the past decade.

What surprised me was seeing beef cattle operations tied with dairy among FSA Direct Loan borrowers filing bankruptcy.

After thinking about it, the explanation made sense.

Many FSA borrowers are beginning or smaller cattle producers who rely on these programs to establish or grow their operations. Several difficult years of lower cattle prices earlier in the decade, combined with higher feed, fuel, and operating costs, created financial stress that eventually showed up in these numbers.

It's also an important reminder that this report reflects a specific group of borrowers—not necessarily the cattle industry as a whole.

3. Wisconsin's Dairy Industry Appears to Be Under Tremendous Stress

One thing that became very clear throughout the report was how heavily Wisconsin was represented.

Wisconsin led both the Direct Loan and Guaranteed Loan bankruptcy data by a significant margin.

I genuinely feel for those farm families.

The dairy industry has faced years of low milk prices, higher labor costs, increasing equipment expenses, and rising interest rates. Many smaller dairy operations have been squeezed from every direction.

When one state consistently stands out in the data, it reminds us that agriculture isn't one economy. Every region and every commodity has its own unique challenges.

While row-crop producers across the Upper Plains have certainly experienced difficult years recently, Wisconsin's dairy producers appear to have carried an especially heavy burden.

4. We're Still Below the 2019 Peak

This may have surprised me more than anything.

Given everything agriculture has endured since 2023, I honestly expected bankruptcy filings to have already surpassed the levels seen in 2019.

They haven't.

That says something about the resilience of American agriculture.

It tells me that producers have been making difficult decisions long before bankruptcy becomes necessary. Lenders have worked with borrowers. Government programs, including those offered through the Farm Service Agency, have provided important support. And in many parts of the country, strong land values have continued to provide equity and financial flexibility.

The question I find myself asking is: What will the 2026 numbers look like?

Hopefully commodity prices improve and margins recover.

But if current conditions continue, 2026 may provide a clearer picture of whether agriculture has weathered this cycle or whether more producers begin exhausting the options they've relied on over the past several years.

My Biggest Takeaway

The biggest lesson I took from this report isn't about bankruptcy.

It's about planning.

Bankruptcy is almost always a lagging indicator. Long before anyone files, families are making difficult decisions. They're restructuring debt, renewing operating loans, delaying equipment purchases, selling machinery, considering the sale of land, postponing retirement, or having conversations they've been putting off for years.

Those are the conversations I hear.

As a land broker, I rarely receive a call that begins with, "Steve, we're filing bankruptcy."

Instead, I hear:

"We're thinking about selling an 80."

"We'd like to reduce some debt."

"The kids aren't coming back to the farm."

"What do you think our land is worth today?"

Those conversations happen long before bankruptcy ever enters the picture.

The takeaway from this study shouldn't be that FSA loans are risky. Quite the opposite. The Farm Service Agency has helped thousands of beginning farmers and ranchers establish operations that otherwise may never have been financed. Their willingness to work with producers through difficult times has likely prevented many more bankruptcies than this report could ever measure.

Agriculture has always been cyclical.

North Dakota's resilience should give us confidence. Wisconsin's challenges should remind us how quickly conditions can change. And regardless of where you farm, the best financial decisions are almost always made before they become necessary.

I'll be watching the 2026 numbers closely. Hopefully they show that agriculture has weathered another difficult cycle. But if they don't, the lesson won't be that farming failed. It will simply reinforce something I've believed for years: planning early creates options, and options are one of the most valuable assets a farm family can have.

Author Bio: Steve Link is a Broker and Auctioneer with Pifer's Auction & Realty, specializing in farm, ranch, and recreational land across the Upper Midwest. Steve works with landowners on valuations, auctions, private sales, and long-term transition planning, helping families maximize the value of one of their most important assets, their land.