Before leaving for the August recess, the House and Senate quickly adopted legislation to expand the amount of eligible assets qualifying for Chapter 12 farm bankruptcy.
The legislation (S. 897
and H.R. 2336
), driven by the ongoing economic difficulties in the farm sector, expands the current level of eligible assets from $4.2 million to a new threshold of $10 million.
ICBA opposes expansion of Chapter 12, whereas national farm groups including the American Farm Bureau and the National Farmers Union, as well as the Farm Credit System, supported expansion.