Congress is easing the process of reorganizing debt through bankruptcy rules, making more farms eligible.
This month, Iowa Senator Chuck Grassley introduced legislation to update Chapter 12 bankruptcy laws in the Senate, with a companion bill introduced this week in the House.
Grassley says the bill should have been passed years ago, “In ’86, when I passed the first Chapter 12 farm bankruptcy relief act. We capped it at $3 million. But $3 million’s not enough money today with the increase in the price of farm land. So a lot of farmers that may be in trouble couldn’t take advantage of it.”
The law would update to a cap of $10 million dollars.
Both the American Farm Bureau Federation and National Farmers Union have endorsed the bill.