In a rare display of bipartisan concern, two former leaders in Nebraska’s agriculture sector have joined forces to alert Congress about the troubling state of the farm economy. Their concerns are amplified as farm bankruptcies rise across the nation.
Over the last year, the number of farms filing for Chapter 12 bankruptcy has surged to 315, marking a 46% increase from 2024. This specific chapter of bankruptcy law is tailored for farmers, allowing them to restructure their debts while keeping essential assets like livestock.
The Midwest is experiencing the brunt of this crisis. The region saw 121 farm bankruptcy filings in 2025, reflecting a 70% rise from the previous year. Nebraska accounted for 17 of these cases, placing it just behind Iowa in the 13-state region.
Among those raising the alarm are Bart Ruth, an eastern Nebraska farmer and former president of the American Soybean Association, and Don Hutchens, the former director of the Nebraska Department of Agriculture. Both have signed a letter urging congressional committees to convene hearings on the myriad challenges facing American farmers, from shrinking international markets to rising operating costs driven by tariffs.
The letter states, “Unfortunately, the indiscriminate and haphazard nature of the current tariff policies have not revitalized American manufacturing and have significantly damaged the American farm economy.”
Trade tensions have exacerbated a historic agricultural trade deficit, posing significant hurdles for Nebraska farmers competing globally. The U.S. has seen its share of global soybean exports plummet from 47% in 2018 to just 24% today. Notably, Nebraska ranks fifth in the nation for soybean production.
Ruth emphasizes the need to roll back tariffs that are disrupting export markets. “Trade is not something that happens overnight,” Ruth said. “You have to spend years building relationships and making contacts and developing trust with trading partners.”
While Ruth views the House vote as largely symbolic, given that President Trump is expected to veto any resolution, he remains hopeful that it could eventually lead to a Congressional majority capable of overriding a veto.
The letter also highlights the detrimental impact of reduced staffing and funding for research at the USDA. The Trump Administration’s focus on government efficiency has led to nearly a 20% reduction in the agency’s workforce in 2025.
“Farmers don’t want government handouts,” the letter contends. “They want markets. They want world class research so they can compete.”
The bipartisan coalition proposes nine strategies to rejuvenate the agricultural economy, such as exempting farms from tariffs, enacting a new farm bill, and restoring funding for land-grant agricultural research.
In the interim, farm debt is projected to reach unprecedented levels. USDA forecasts suggest it could soar to a record $624.7 billion by 2026, while farm income continues its fourth consecutive year of decline.
(Harvest Public Media reporter Rachel Cramer contributed to this story)
