Sep 3, 2019Trump approves bankruptcy law changes intended to help farmers
According to a summary from the American Farm Bureau Federation (AFBF), the legislation addresses bankruptcy problems plaguing small and mid-size farms across the country by helping farmers avoid liquidations and giving them and their creditors a better chance at successful reorganizations.
To accomplish that, the legislation broadened who qualifies as a “family farmer” under Chapter 12 of the Bankruptcy Code by raising the level of total liabilities to qualify from $4.1M to $10M.
“Michigan Farm Bureau applauds this work by Congress and the Trump administration to put another tool into the pockets of farmers as they weather these unprecedented circumstances,” said John Kran, Michigan Farm Bureau’s National Legislative Counsel. “We’re especially appreciative of our own Representative Elissa Slotkin for serving as a cosponsor of the legislation.”
AFBF President Zippy Duvall also showed appreciation for the new law in a statement issued by the organization.
“This law relieves some of the uncertainty farmers are facing due to export market disruptions, weather events and declining farm income,” Duvall said. “While this is a sobering reflection of the current state of the agricultural economy, we are grateful to Congress, the President and his administration for their prioritization of reforming our current bankruptcy laws.”
– Michigan Farm Bureau