ANALYSIS: Floods, Fires, and ICE—Where Force Majeure May Go Next

Farm bankruptcies tied to immigration enforcement are setting the stage for a new wave of litigation over the extent to which “acts of government” can excuse nonperformance.

The sharp rise in agricultural bankruptcies in 2025 will force bankruptcy courts to wrestle with force majeure, a conventional contract clause that will see renewed relevance in the light of 2026. The upheaval caused by immigration enforcement, visa suspensions, and regulatory audits has thinned the labor supply upon which agriculture relies, leaving farms unable to harvest crops and honor contracts. The litigation that results will test whether government-induced labor shortages—in agriculture and ...