With farm bankruptcies rising and agricultural debt loads soaring, the U.S. Senate on Thursday passed a bill that will make it easier for more farmers with larger amounts of debt to file for bankruptcy protection, Reuters reported. The bipartisan bill — H.R. 2336, the "Family Farmer Relief Act of 2019" — raises the ceiling on how much debt producers who file for chapter 12 bankruptcy can have, to $10 million from the previous $4 million. It costs far more now to run a U.S. farm than it did 30 years ago, according to U.S. Department of Agriculture data. Without this change to the law, bankruptcy experts say, farmers whose debts exceed $4.15 million are forced to use chapter 11 protection, which is more costly and onerous. ABI testified in support of the bill. A Reuters analysis of Federal Deposit Insurance Corporation data found that — after years of building up their farm lending portfolios in the wake of the U.S. housing meltdown of the late 2000s — top Wall Street banks are now pulling back from the sector as farm incomes are falling and farm loan delinquency rates are rising. Read more.
In addition to the Family Farmer Relief Act, the Senate on Thursday also passed H.R. 3311, the Small Business Reorganization Act; H.R. 2938, the Honoring American Veterans in Extreme Need Act (HAVEN Act); and H.R. 3304, the National Guard and Reservist Debt Relief Extension Act. ABI testified in support of H.R. 2938, H.R. 3311 and H.R. 2336. All the bills passed the U.S. House of Representatives and are non-controversial. The bills received unanimous consent to proceed to passage. The legislation will now be sent to President Trump to be signed into law. Click here to read ABI’s press release.
