A news release last week from House Ag Committee member Antonio Delgado (D., N.Y.) stated that, “On Thursday, [Rep. Delgado] led House Judiciary Committee Ranking Member Jim Sensenbrenner (R-Wisc.), House Agriculture Committee Chairman Collin Peterson (D-Minn.), and Reps. TJ Cox (D-Calif.), Kelly Armstrong (R-N.D.) and Dusty Johnson (R-S.D.), in introducing the bipartisan Family Farmer Relief Act of 2019, legislation that would ease the process of reorganizing debt through Chapter 12 bankruptcy rules. The restructuring of the rules to make more farms eligible comes amid a continued downturn in the farm economy.
“‘For folks in Upstate New York, farming is more than a job—it’s a way of life. And in this extremely challenging farm economy, we must come together to help our family farmers overcome years of low prices and increased market consolidation. The Family Farmer Relief Act will provide the critical restructuring and repayment flexibility these folks need to get through these hard times without permanently closing their operations,’ Delgado said.
“The bill, which is the House companion to legislation introduced by Senators Chuck Grassley (R-Iowa), Amy Klobuchar (D-Minn.), Ron Johnson (R-Wisc.), Patrick Leahy (D-Vt.), Thom Tillis (R-N.C.), Doug Jones (D-Ala.), Joni Ernst (R-Iowa) and Tina Smith (D-Minn.), expands the debt cap that can be covered under Chapter 12 bankruptcy from $3,237,000 to $10,000,000. The changes reflect the increase in land values, as well as the growth over time in the average size of U.S. farming operations and are meant to provide farmers additional options to manage the downturn in the farm economy. The legislation is endorsed by the American Farm Bureau Federation and National Farmers Union.”
The release added that, “The bill will now be referred to the Judiciary Committee for consideration.”
