New Bankruptcy Law Provides Debt Relief
Published
9/8/2019
President Trump recently signed the Family Farmer Relief Act of 2019, a measure that raises the Chapter 12 debt limit from $4.1 million to $10 million. The law will help family farmers struggling with export market disruptions, weather events and declining farm income, AFBF President Zippy Duvall said in a statement.
“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,” Duvall said.
Following several years of low farm income and rising debt levels, a review of Federal Deposit Insurance Corporation quarterly call report data reveals that the delinquency rates for commercial agricultural loans in both the real estate and non-real estate lending sectors are at a six-year high. More information on some of the financial challenges facing farmers and ranchers can be found HERE.
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